Contract award, Gold, Mining services, News, Perenti

Barminco locks in contract extension at Sunrise Dam

Maiden drilling at Platina Resources’ Xanadu gold project in WA has confirmed a large-scale gold system over 600m by 600m in all directions.

AngloGold Ashanti has awarded Barminco, an underground mining company owned by Perenti, a three-year contract extension at its Sunrise Dam gold mine.

The contract extension is worth $450 million and will commence on October 1.

“AngloGold Ashanti is one of our largest clients, and we are proud to have worked with them for the past 20 years,” Perenti managing director and chief executive officer Mark Norwell said.

“Perenti has an excellent track record at extending existing contracts which we attribute to our collaborative relationship with our clients.

“Successful maintenance of our long-term relationships ultimately supports our business, as continuation of contracts does not require the upfront capital expenditure of new contracts. Ultimately this supports generation of free cash flow which continues to be a key focus of our strategy.”

Sunrise Dam is located in the Goldfields region of Western Australia. AngloGold revealed earlier this year that the operation accounted for $47 million of its regional capital expenditure and produced 252,000 ounces of gold in 2023.

AngloGold has been partnered with Barminco since the commencement of underground operations at Sunrise Dam in 2003, when the first portal was cut.

Barminco was awarded a $500 million underground mining services contract for Sunrise Dam in 2011, which was the second largest underground mining contract ever awarded in Australia at the time. The contract was then extended in 2018 for $700 million, which saw Barminco carry out the services for another five years.

Barminco will continue carrying out underground development, production and mining support services at Sunrise Dam for another three years.

“Our people are at the heart of our success and their dedication, innovative thinking and highly skilled efforts have again resulted in the award of a significant contract for a long-standing client within a great mine in Western Australia,” Perenti president of contract mining Gabrielle Iwanow said.

“We are proud to have partnered with AngloGold Ashanti for over two decades, delivering on our purpose of creating enduring value and certainty.”

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