Barminco has been awarded the contract for all underground development and production works for Evolution Mining’s Cowal Underground project in New South Wales.
Owned by Perenti, leading global underground mining services business Barminco, with operations in Australia, Africa and North America, is currently developing an exploration decline and conducting diamond drilling services at Cowal.
The award of this new contract significantly expands Barminco’s scope at the site to include the development of a second portal, all underground development and production works, and associated underground mining services required to support the continued mill feed of underground ore.
Perenti managing director and chief executive officer Mark Norwell said the award of the Cowal contract aligns with the company’s strategy of increasing its earnings in top-tier regions and with top-tier clients.
“The Cowal contract represents one of the largest underground mining projects in Barminco’s history, generating revenue of nearly $520 million with an initial term of four years, from a contract commencement date in early July 2022,” he said.
“This contract award represents not only a significant expansion and continuation of our first underground contract in New South Wales but is also a fantastic opportunity for Perenti to build on our strong working relationship with Evolution, one of Australia’s premier gold mining companies.
“Between now and the end of FY22, we will commence investing the capital required for this project with revenues and earnings ramping up in FY23 and beyond. Whilst this cash profile will impact leverage during project ramp-up we expect FY22 leverage to be in line with previous estimates. The project represents a significant improvement to our Australian underground earnings base and will generate strong project cash flows and returns in support of our capital allocation and investment.”