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GR Engineering settles Davyhurst dispute

13th August 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Perth-based GR Engineering and fellow-listed Eastern Goldfields have struck a settlement agreement relating to the 2017 refurbishment contract of the Davyhurst processing plant.

GR Engineering said on Monday that while the terms of the settlement deed were confidential, the company could confirm that the terms contemplated the payment of A$8.25-million, with the settlement sum payable in three installments, with the last payable by October 3.

GR Engineering was awarded the engineering, procurement and construction services contract for Eastern Goldfields’ 1.2-million-tonne-a year Davyhurst processing facility’s refurbishment.

The contractor claimed A$9.9-million on the contract after commercial discussions between the two companies broke down, with GR Engineering claiming Eastern Goldfields had failed to meet its commitments to pay the majority of the claimed amounts.

Eastern Goldfields for its part had alleged the existence of minor defects and omissions in the work completed by GR Engineering, which the project house considered "immaterial".

The Davyhurst plant poured its first gold in July of last year.

Edited by Creamer Media Reporter

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