Barminco wins $30m contract extension

A subsidiary of mining services company Perenti has secured a $30 million contract extension for underground mining activities at one of IGO Limited’s nickel mines.

Hazelmere-based Barminco was awarded the nine-month contract extension to continue its work as the primary underground mining contractor at the Flying Fox nickel mine east of Hyden.

The company has been the primary contractor since 2004.

“In Australia, the labour market is still tight and inflation and coast escalation remains stubbornly persistent, however strong and collaborative working relationships, like the relationship between IGO and Barminco, are key to the success of our business as well as the success of our clients,” Perenti chief executive Mark Norwell said.

“By working collaboratively with our clients, we continue to navigate and manage challenging macro-economic conditions.”

The Flying Fox mine is part of IGO’s Forrestania operation located 400km east of Perth.

The operation also encompasses the Spotted Quoll nickel mine.

“We have a very long and proud history of operating within the Forrestania operation and we are pleased to have delivered value and certainty at the Flying Fox mine from a greenfield development project through a mature operating mine as It is today,” President of contract mining Paul Muller said.

“We look forward to continuing our relationship with IGO, our largest client in Australia.”

At market close, Perenti shares dropped 1.23 per cent to $1.20.

IGO shares were up 1.35 per cent to $12.75 at market close.