Barminco secures East Kundana mining contract

Image: au.news.yahoo.com

Barminco has obtained a three-year $275 million contract at Northern Star’s East Kundana joint venture project in WA’s Eastern Goldfields.

The contract includes a two-year extension option, and comprises underground mining services including production, development, haulage, bogging, maintenance, and operation of underground services.

It was previously held in-house by Northern Star Resources, a joint venture between Tribune Resources and Rand Mining.

Barminco will also offer roles to all employees working on the current contract, and those who accept it will keep all existing entitlements.

The contractor also agreed that no more than 15 per cent of all contract staff will be FIFO workers.

Peter Stokes, Barminco’s chief executive, said he was delighted their company had secured such a major contract, according to The West Australian.

“Barminco has been providing diamond drilling services at a number of Northern Star sites and we welcome the opportunity to now demonstrate our underground mining credentials at Kundana,” he said.

“Barminco’s performance, during what has been a challenging period for the sector, is a real testament to our entire workforce, including our operators, maintenance, administration and executive teams, who have all worked hard to ensure the business is in the best possible shape both operationally and financially.”

The contractor also announced the payment of $US23.1 million in outstanding bond debt, funded through cash reserves.

This comes on the back of the company celebrating five years without a lost time injury (LTI) at Western Area’s Flying Fox and Spotted Quoll nickel mine sites.

The achievement has been attributed to the sites’ high safety measures with Stokes giving credit to the workers.

“I think any contractor that can reach a five year LTI milestone should be very happy and proud with that outcome,” he said.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.