Barminco has secured two contract extensions worth a combined $335 million at Gold Fields’ Agnew gold mine in Western Australia.
The two contracts span four years with the option of a 12-month extension. They extend Barminco’s existing contracts for underground mining services at the Waroonga pit and diamond drilling contracts at both Waroonga and the northerly New Holland pit.
Gold Fields and Barminco have a long-established relationship at Agnew. Barminco will have provided services at the operation for 12 continuous years when the contract extensions have been completed.
“Over that time we have completed approximately 50km of development and 2.5Mt of production,” said Barminco chief executive officer Paul Muller.
“We are very pleased to have secured these extensions and look forward to working with Gold Fields to continue driving safe and efficient production at the Agnew gold mine.”
Agnew is in the Eastern Goldfields, 23km from the town of Leinster and 375km north of Kalgoorlie.
Gold Fields executive vice president Australasia, Stuart Matthews, said the Agnew mine continued to be a strong performer for the company, exceeding both production and cost guidance last year, while also increasing reserves.
“We are committed to ongoing investment to maintain its life and production profile, with a further $25 million exploration program under way at Agnew this year, and investment in key infrastructure projects, including the new accommodation camp for our employees and contractors,” Matthews said.
The Agnew mine produces an average of 250,000oz of gold per year for Gold Fields.