Diversified mining services company Perenti (ASX:PRN) has secured a 5-year contract valued at around $630 million at US gold miner Newmont’s (NYSE:NEM) Subika underground gold mine in Ghana.
The company reports the contract was awarded through the UMA joint venture (JV) which is 70% owned by Perenti’s subsidiary AUMS while the remaining 30% is owned by Ghanaian civil and mining contractor Rocksure International and notes it has been effective since 1 January 2023.
Under the terms of the agreement, through the UMA JV, Perenti will undertake all underground development and production activities, diamond drilling, and associated support services at the mine which is located about 310km from Accra.
Additionally, the contract stipulates Newmont will acquire the current fleet of underground equipment associated with the project and will also be responsible for the acquisition of additional fleet as required for the project.
Perenti expects that this capital strategy will have ‘significant’ benefits but notes it will primarily reduce the capital intensity of the project while still delivering ‘strong’ returns. The company also expects to finalise the sale of these assets before the end of the current financial year.
Commenting on the contract, Perenti Chief Executive Officer (CEO) and Managing Director Mark Norwell says: “With this new contract, Perenti not only expands its tenure in Ghana but furthers its relationship with Newmont, the world’s leading gold company with a world-class portfolio of assets in favourable mining jurisdictions.
“With this new contract, Perenti not only expands its tenure in Ghana but furthers its relationship with Newmont…”
We are pleased that we will continue to deliver value and certainly to Newmont and other stakeholders in Ghana and beyond.”
Perenti President of Contract Mining Paul Muller also commented on the contract, saying: “Ausdrill commenced operations in Ghana in 1991 and with this 60-month contract, Perenti through its subsidiaries, will have accumulated nearly 40 years of in-country expertise with a strong track record of prioritising local procurement, training, and employment opportunities across a wide range of local and regional Ghanaian stakeholders.”
As part of Newmont’s larger Ahafo complex, AUMS began development and production activities at Subika in mid-2017.
Perenti is an Australian diversified mining services company with interest in surface and underground mining, as well as mining support services. The company operates across 11 countries with a workforce of close to 8,000 people.
Images: Perenti Ltd
