Perenti's underground mining services contractor Barminco has secured a three-year $200 million contract with Westgold at its Great Fingall project near Cue.
Perenti's underground mining services contractor Barminco has secured a three-year $200 million contract with Westgold at its Great Fingall project near Cue.
As part of the deal, which includes a 12-month option to extend and mobilisation expected from next month, Barminco will provide a raft of underground mining services – including mine development and production.
“This award highlights the depth and scale of Barminco’s mining and technical capability and supports the ongoing focus of growing our underground mining business in Australia and select regions internationally,” Perenti managing director and chief executive Mark Norwell said.
“This project further increases Australian earnings for Perenti and supports our ongoing focus on year-on-year sustainable cash generation.
“We look forward to delivering value for Westgold through our collaborative approach and focus on operational excellence.”
Westgold, a gold miner which expects to produce between 330,000-350,000 ounces of gold during FY25, said Barminco's involvement at Great Fingall would allow it to re-deploy its high-performing equipment and team to the company's bigger owner-operated projects.
"The Great Fingall mine is a smaller mine and as such lends itself to contract mining," Westgold managing director Wayne Bramwell said.
"It is a high grade, but comparatively simple, operation - with cost efficiency and productivity underpinned by a detailed mine plan, robust drill data, favourable ground conditions and excellent, established mine infrastructure.
"After a competitive tender process, Barminco was selected as our partner for Great Fingall due to its stand-out safety processes, mining efficiency, and track record of delivery.
"These qualities reduce the execution risk around Great Fingall for Westgold and will ensure a smooth transition to contract operations in the first quarter of FY26."
Westgold added it is anticipating first production at the project in the first few months of FY26.
Thursday's contract win for Barminco follows on from news last month that it secured a new contract to continue work at Gold Fields' Agnew gold mine, a three-year deal valued at $500 million.
As of 10.01am AWST, Perenti shares were up 2 per cent to $1.60.
