Perenti secures $235 million contract extension at Geita

big gold nugget in front of a mound of gold

Perenti Global subsidiary African Underground Mining Services (AUMS) has locked in a two-year contract at AngloGold Ashanti’s Geita gold mine in Tanzania.

The contract is worth $US186 million ($244 million), with Perenti’s share increasing its work in hand by $235 million.

Perenti stated that 20 per cent of AUMS’s equity will establish mining support services company BG Umoja Services under the contract.

BG Umoga is a joint venture between Perenti and Geofields Tanzania, which will supply mining support services to the Geita mine.

Perenti managing director and chief executive officer Mark Norwell welcomed the continuation of the company’s relationship with AngloGold.

“We are very pleased to be continuing our strong, long-term working relationship with AngloGold Ashanti at their flagship Geita Mine,” he said.

“Furthermore, this contract extension includes the addition of Geita Hill, a new underground development within the Geita Complex, which will see a steady increase in our scope of works and revenue run rate as the development ramps up from a single heading decline into multiple work areas and then into production later in 2021.”

The Geita mine was originally an open pit operation, however switched to underground in 2016. AUMS began working at Geita upon the transition to underground operations.

“Perenti first started operating in Tanzania in the late 1990’s and the award of the contract extension at the Geita mine provides us with a fantastic opportunity to continue to partner with, and support our numerous local businesses, suppliers and contractors,” Perenti mining chief executive officer Paul Muller said.

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