Australian Securities Exchange (ASX)-listed Perenti’s underground mining division, Barminco, has obtained a three-year contract extension from Barrick Gold to continue its operations at the Hemlo gold mine in Ontario, Canada.
The contract, valued at more than A$200m ($131.89m), encompasses a range of services including underground mine development, production and various mining support activities.
Perenti contract mining president Gabrielle Iwanow said: “We are pleased to continue working with Barrick and demonstrating our leading underground capability in the North American market.
“Barrick is an important client for Barminco and we look forward to continuing to partner with them to deliver safe production at Hemlo.”
The Hemlo mine, situated 350km east of Thunder Bay, has been operational since 1989 and transitioned to a contract mining model in 2019, with Barminco as the principal underground contractor.
The contract, spanning an initial 36 months, includes the option for two additional one-year extensions.
If Barrick Gold exercises these options, Barminco's tenure at the Hemlo mine could extend until 2029.
The arrangement stipulates that Barrick Gold retains ownership of the existing underground mining fleet and is responsible for acquiring any additional equipment needed.
This arrangement significantly diminishes the capital requirements for Barminco.
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 long-term nature of these relationships is built on a foundation of creating enduring value and certainty for our clients.
“This aligns our operational success with the goals of our clients and creates a collaborative working environment. 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.”
