Valmec has secured a contract with Newmont for the Tanami underground gold mine’s stage two expansion project in the Northern Territory.
The contract involves an additional package of infrastructure works, which together with Valmec’s new contract for Water Corporation, has a combined value of around $23 million.
Newmont last year contracted Valmec for the construction of the Tanami expansion project in a $6 million agreement. A few months later in October, Newmont moved into to the execution phase of Tanami’s expansion project.
“We are pleased to announce our latest awarded contracts with Water Corporation and Newmont Mining Services and to be able to continue our strong trading relationships with both customers, demonstrating both the strength of our existing relationships and Valmec’s ongoing ability to diversity and grow its presence within the greater government utilities and resources sectors,” Valmec managing director Steve Dropulich said.
“Together with Valmec’s current suite of services in onshore gas infrastructure, our latest awarded projects and service contracts are testament to the resilience of our market offerings, even within these challenging COVID-19 economic conditions.”
Tanami’s expansion is projected to increase the mine life beyond 2040, underpinned by the expansive Auron deposit beneath the original Callie orebody.
This is set to increase Newmont’s average yearly gold production at Tanami by around 150,000–200,000 ounces a year for the first five years beginning 2023.
The mine is located in the remote Australian Tanami desert.