The agreement ensures that Barrick Gold retains ownership of the existing underground mining fleet. Credit: Peruphotart/Shutterstock.

Perenti’s underground mining business, Barminco, has secured a three-year extension with Barrick Gold to continue contract mining at the Hemlo gold mine in Ontario, Canada.

Hemlo, situated 350km east of Thunder Bay, has been operational since 1989.

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This contract extension underscores the ongoing partnership between Barminco and Barrick Gold that began when Hemlo transitioned to a contract mining model in 2019.

Barminco has been serving as the principal underground contractor for the mine since the transition.

The new contract stipulates an initial 36-month term with options for two additional one-year extensions, potentially extending Barminco’s tenure at the mine until 2029.

The agreement ensures that Barrick Gold retains ownership of the existing underground mining fleet, while being responsible for acquiring any additional equipment needed.

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This arrangement significantly lowers the capital requirements for Barminco, making the project more financially manageable.

The contract is valued at more than A$200m and encompasses a range of services including mine development, production and mining support.

Perenti managing director and CEO Mark Norwell said: “The continuation of our relationship with Barrick at the Hemlo gold mine for at least the next three years is another great example of how our Contract Mining team extends contracts over the life of a mine operation.

“The low capital intensity of this project is one of several capital-light contracts we operate across the organisation, with our first capital-light contract secured in 2018.”

The new contract follows a contract extension awarded to Barminco in August 2024 to provide underground mine development and support services for the Hemlo gold mine.