Centerra Gold

Location: Develi, Turkey
Commodity: Gold Dore
Project Phases: Pre-Feasibility Study / Feasibility Study / Detailed Engineering / Construction

Client Overview

Centerra Gold Inc., headquartered in Toronto, Ontario, is a global gold mining company with a portfolio of high-value assets across multiple jurisdictions. The Öksüt Mine in central Turkey was developed as a greenfield open‑pit heap leach operation, featuring two-stage open-circuit crushing and an ADR plant for gold refining. The project represented a major growth initiative for Centerra, requiring innovative planning to optimize capital efficiency while meeting local obligations and corporate social responsibility targets.

Client Needs

Centerra Gold required an experienced partner to lead the Öksüt project through all study and execution phases, from pre‑feasibility through construction. Key objectives included:

• Developing a NI 43‑101‑compliant Feasibility Study to establish project viability and guide investment decisions.
• Completing detailed engineering to achieve a high level of design maturity prior to construction.
• Minimizing indirect costs by self-performing procurement and contracting small design and construction packages rather than adopting an EPC/EPCM model.
• Reducing contingency and risk reserves while ensuring adherence to corporate governance standards.
• Aligning procurement strategy to support local obligations and corporate social responsibility initiatives.

TMG’s mandate extended to acting as Corporate Project Manager, providing leadership across project planning, procurement strategy, schedule development, and ongoing execution support.

TMG’s Contributions

• Comprehensive Project Management Oversight: TMG served as Corporate Project Manager, coordinating closely with the in‑country Technical General Manager to ensure schedule adherence, budget discipline, and compliance with corporate governance requirements.
• Feasibility Study and NI 43‑101 Compliance: TMG led the Feasibility Study process to NI 43‑101 standards, producing the technical and economic foundation required for investment approval.
• Detailed Engineering Execution: Achieved over 90% engineering completion before construction, enabling a shift from unit-rate contracting to lump sum agreements and reducing capital exposure.
• Procurement and Contracting Strategy: Developed the overall package list and procurement approach, self‑performing procurement scope to minimize markups and bundle contracts for cost efficiency.
• Construction Execution Support: Provided ongoing engineering, procurement, and project controls support during construction, working closely with the in‑country site management team to maintain alignment with schedule and cost targets.
• Risk and Contingency Optimization: Through detailed planning and early infrastructure readiness (power, water, site access), TMG reduced contingency and risk reserves from feasibility projections while safeguarding execution reliability.

Results

The collaboration between Centerra Gold and TMG delivered significant cost and schedule benefits:

• $39.6 Million Project Savings: Achieved by completing 96% engineering prior to construction and securing critical infrastructure in place before breaking ground.
• $7.7 Million Earthworks Optimization: Realized through heap leach lining substitution, site-wide cut and fill balancing, and base course material optimization.
• $1 Million Procurement Savings: Delivered by self-performing procurement scope and rejecting $2.3 million in change orders after technical due diligence.
• Consultant Cost Reduction: Saved $868,924 by eliminating external consultant markups through internal tendering.
• Execution Model Innovation: The self-perform procurement approach minimized indirect costs, provided flexibility to meet local obligations, and avoided the overhead of an EPC/EPCM model.
• Budget Improvement: Reduced final execution budget by over $25 million compared to Feasibility Study economics through disciplined planning and contracting strategies.

The Öksüt Madencilik A.Ş. Project demonstrates Centerra Gold’s commitment to disciplined planning and innovative execution models. TMG’s leadership in project management, value engineering, and procurement strategy enabled the delivery of a major greenfield heap leach operation on time and under budget while meeting corporate and local objectives.