Perenti (ASX:PRN) reports that its surface mining business in Africa, African Mining Services, (AMS) has been awarded a contract extension for surface mining activities, including load and haul, drill and blast, grade control and crusher feed, at Resolute Mining’s (ASX:RSG) Mako Gold Mine in Senegal.
The ASX-listed diversified global mining services group reports that the contract is valued at about US$185 million over a period of 4 years.
Through AMS, Perenti has provided surface mining activities at the Mako mine since 2017.
This contract extension includes updated commercial conditions and in-line with Perenti’s Capital Management Policy, the company will optimise the management of existing fleet and equipment at the project, which is forecast to have a low capital expenditure requirement and generate sustainable returns.
The extension of the Mako contract does not have a material impact on Perenti’s FY23 guidance, which remains unchanged and as announced on 19 December 2022.
“We are confident that our dedicated, predominantly local workforce will continue to deliver value for our client”
Mark Norwell, Managing Director and CEO of Perenti says: “The Mako project has been a part of the AMS portfolio for several years and we are pleased that our strong operational performance and relationship with Resolute Mining, has allowed us to execute this contract extension, which supports our 2025 strategy.
We are confident that our dedicated, predominantly local workforce will continue to deliver value for our client. We look forward to continuing our relationship with Resolute Mining at the Mako project as we seek to deliver enduring value and certainty for all our stakeholders.”
Headquartered in Perth, Australia, Perenti is a diversified global mining services group with interests in contract mining, mining support services and future technology solutions.
The group was founded in Kalgoorlie in 1987 and is today one of the world’s largest mining service companies providing surface and underground mining at scale. Its portfolio consists of sustainable, inter-related and value-adding mining services and technology focused businesses.
Write to Adam Orlando at Mining.com.au
Images: Perenti Ltd
