Perenti’s (ASX:PRN) underground mining business Barminco has signed a three-year contract with Barrick Gold Corporation (TSX:ABX) to continue mining at the Hemlo Gold Mine in Canada.
Valued at more than $200 million, the contract is initially for 36 months, but includes two 12-month options to extend. If these options are exercised, Barminco will be operating at the Hemlo Mine until 2029.
Perenti, which has a market capitalisation of $905.1 million, says under the terms of the existing contract, Barrick owns the current fleet of underground equipment and will procure any additional fleet required for the mine.
This reduces the capital intensity of the project for Barminco. The contract involves underground mine development, production, and mining support services.
CEO Mark Norwell says the continued relationship with Barrick at the Hemlo mine is another example of how our contract mining team extends contracts over the life of a mine operation.
“The long-term nature of these relationships is built on a foundation of creating enduring value and certainty for our clients,” Norwell says.
“This aligns our operational success with the goals of our clients and creates a collaborative working environment.”
Hemlo lies 350km east of Thunder Bay in Ontario, Canada, and has been in production since 1989.
Barminco has been the main underground contractor since Barrick Gold transitioned its operation to a contract mining model from owner operator in 2019.
Perenti is a diversified mining services company focused on contract mining, mining support services, and future technology solutions.
Write to Aaliyah Rogan at Mining.com.au
Images: Perenti
