Barminco Secures Underground Contract Extension with Barrick at Hemlo Gold Mine, Canada
[Click image to enlarge]
Perenti’s underground mining business, Barminco, has signed a three-year contract with Barrick Gold to continue contract mining at the Hemlo Gold Mine in Canada.
Hemlo is located 350 kilometers east of Thunder Bay in Ontario, Canada and has been in production since 1989. In 2019, Barrick transitioned the operation to a contract mining model from owner operator, and Barminco has been the main underground contractor since. The contract is initially for 36 months, but also includes two 12-month options to extend. If these options are exercised, Barminco will be operating at Hemlo until 2029.
“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,” said Mark Norwell, managing director and chief executive officer of Perenti.
“The low capital intensity of this project is one of several capital light contracts we operate across the organization, with our first capital light contract secured in 2018,” added Norwell.
Under the terms of the existing contract, Barrick owns the current fleet of underground equipment and will procure any additional fleet required for the mine. This significantly reduces the capital intensity of the project for Barminco. The total contract value is worth more than $132.5 million (AUD$200 million) and involves underground mine development, production, and mining support services.
“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,” said Gabrielle Iwanow, president of Contract Mining at Perenti.
Perenti is a diversified mining services group with interests in contract mining, drilling services, mining services, and technology solutions. Headquartered in Perth and with offices and operations across four continents, they employ more than 11,000 people focused on creating enduring value for investors, clients, people and the communities in which they operate.
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
Copyright © 2024 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
For licensing permission, .(JavaScript must be enabled to view this email address)
