IGO awards Cosmos electrification study to Perenti and ABB collaboration

Perenti and ABB, in collaboration, have been awarded an inaugural contract by IGO Ltd to undertake a study for the full underground electrification of IGO’s Cosmos Nickel Project.

The electrification study is a significant step in IGO’s commitment to continuously improving its sustainability performance by trialling new technologies and decarbonising its operations, helping to create a green energy future.  

Bird-eye view of IGO’s Cosmos Nickel Project in Western Australia

In November 2022, Perenti signed a Memorandum of Understanding (MoU) with global technology company ABB to collaborate to develop a service offering that combines Perenti’s mining expertise and technical capability with ABB’s electrical and technological expertise. 

The study will see experts from Perenti and ABB work side by side with IGO to provide a pathway for the optimum design of mine electrification at Cosmos. All aspects of electrification will be considered in the study.  

“Valuing the environment and enabling the energy transition is one of Perenti’s three key sustainability imperatives and this study demonstrates the capabilities of our electrification collaboration with ABB,” said Raj Ratneser, Executive Sponsor of Decarbonisation at Perenti. “Decarbonisation and electrification are critical to the future of mining, and we are privileged to be working with our client IGO on this pioneering study.” For more information visit our Investor Centre.

Perenti secures a new five year contract with Newmont at the Subika underground mine

Perenti is pleased to announce that through its UMA joint venture, its subsidiary African Underground Mining Services (AUMS) has been awarded a new, 60-month contract at the Newmont Subika underground gold mine in Ghana. The contract is effective from 1 January 2023.

UMA is a joint venture between Perenti’s subsidiary, AUMS and Rocksure International, a local Ghanaian civil and mining contractor. Under the terms of the contract, through the UMA joint venture, Perenti will undertake all underground development and production activities, diamond drilling and associated support services at the Subika Underground Mine, located approximately 310 kms to the northwest of Accra, Ghana.

AUMS commenced development and production activities at the Subika underground mine in mid-2017 and the new contract will reduce the capital intensity of the project for Perenti while still delivering strong returns.

Mark Norwell, Managing Director and CEO of Perenti said, “With this new contract, Perenti not only expands its tenure in Ghana but furthers its relationship with Newmont, the world’s leading gold company with a world-class portfolio of assets in favourable mining jurisdictions. We are very pleased that we will continue to deliver value and certainty to Newmont and our other stakeholders in Ghana and beyond.”

Paul Muller, President Contract Mining of Perenti said, “Ausdrill commenced operations in Ghana in 1991 and with this 60-month contract, Perenti through its subsidiaries, will have accumulated nearly 40 years of in-country expertise with a strong track record of prioritising local procurement, training and employment opportunities across a wide range of local and regional Ghanaian stakeholders.”

You can view the full ASX release here:

Perenti secures contract extension at Red Chris in Canada

Perenti subsidiary Barminco has been awarded a 12-month contract extension at Newcrest Mining’s Red Chris mine in British Columbia, Canada.

Since June 2021, Barminco has continued to progress the development of an underground exploration decline, an essential first stage of works that will provide a platform for future underground exploration activities, and which may also be used to support access to potential block cave workings. This contract extension enables Barminco to continue underground development works and is expected to deliver approximately A$90 million of revenue over the 12-month contract term. 

Mark Norwell, Managing Director & CEO of Perenti said, “Our strategy in North America is to partner with tier-one operators and long-life assets, where we can add value over the long term. We continue to diligently progress our North American growth strategy and have key executive management personnel based in the region to ensure we develop the right relationships and become engrained within the sector while remaining disciplined in the execution of our strategy.”

Paul Muller, President of Contract Mining said, “Since mid-2021 our team in North America has worked closely with the Red Chris JV as it transforms the mine into a long life, tier-one underground operation. We have developed very strong relationships with the local communities including a partnership with the Tahltan Nation Development Corporation and are very pleased to be on site at Red Chris for at least the next 12 months.”

Perenti secures a contract extension at IGO’s Flying Fox mine

Perenti is pleased to announce that our subsidiary Barminco, has been awarded a nine-month contract extension at the Flying Fox mine which is owned and operated by IGO Limited. The contract extension is effective from 1 January 2023 and has a value of approximately $30 million over the nine-month term.

IGO’s 100% owned Forrestania Operation is located approximately 400 kms to the east of Perth, Western Australia, and includes both the Flying Fox and Spotted Quoll underground nickel mines. Barminco has been the primary underground mining contractor at Flying Fox since December 2004. The nine-month contract extension will see Barminco continue to provide all underground drilling, development and mining activities at Flying Fox.

Mark Norwell, Managing Director & CEO of Perenti said “In Australia, the labour market is still tight, and inflation and cost escalation remains stubbornly persistent, however strong and collaborative working relationships, like the relationship between IGO and Barminco, are key to the success of our business as well as the success of our clients. By working collaboratively with our clients, we continue to navigate and manage challenging macro-economic conditions.”

Paul Muller, President of Contract Mining said, “We have a very long and proud history of operating within the Forrestania Operation and we are pleased to have delivered value and certainty at the Flying Fox mine from a greenfield development project through a mature operating mine as it is today. We look forward to continuing our relationship with IGO, our largest client in Australia.”

Perenti first half FY23 results and business update

Perenti has released its financial and operational results to the market for the first half of FY23.  

Mark Norwell, Managing Director & CEO of Perenti, said: “First and foremost, my thoughts are with the families, friends and workmates of Trevor Davis and Dylan Langridge, our colleagues who tragically lost their lives as a result of the incident at the Dugald River underground mine last week. This is a tragic incident and a devastating loss, with a magnitude that has been and will continue to be felt across our whole organisation. I would like to thank everyone who carried out the search and rescue effort for Trevor and Dylan last week as well as the wider organisation for their support to people directly involved in the incident or more generally, the care provided to each other.

“During the period from 1 July 2022 through to 31 December 2022, Perenti’s ability to deliver for our clients with strong operating performance under a sustainable and disciplined financial framework – while caring for our people and communities – underpins our strong results for this half.

“Our dedicated team of over 9,000 employees have done a fantastic job of developing and executing our 2025 Strategy to the point where we have delivered consecutive periods of earnings and margin expansion. This result is something for everyone at Perenti to be proud of.

“We recognise that the current external market conditions have improved since Covid-19 restrictions started to ease and that our business is in a position to take advantage of these conditions. However, we are also acutely aware of the potential volatility that still exists and we working to manage the controllable aspects of this environment by remaining disciplined in the execution of our strategic objectives.”

You can read more about Perenti’s first half FY23 results and business update here.

Tragic outcome in search for missing miners at Dugald River

Following a significant search and rescue operation at the Dugald River Underground Mine and further to recent announcements, it is with great sadness that Perenti advises of the tragic loss of our colleagues Trevor Davis and Dylan Langridge, the two previously missing Barminco employees.

Managing Director & CEO of Perenti Mark Norwell said, “This is a devastating outcome and I want to extend my deepest sympathies and condolences to the families, friends, colleagues and loved ones of Trevor and Dylan, both of whom should have come home safely from work yesterday.”

Yesterday morning, at approximately 125 metres below the surface, an incident occurred resulting in three Barminco employees, one in a drill rig and two in a light vehicle, falling approximately 15 metres into a void within a previously backfilled stope. The drill rig operator was rescued and received medical treatment for minor injuries. Tragically, through the rescue effort it has been confirmed that the two other Barminco employees, Trevor Davis and Dylan Langridge were fatally injured.

Dylan Langridge was 33 years old and joined Barminco in March 2020 as a truck operator at Savannah before joining the service crew at Dugald River later that year. Dylan continued to progress his career at Dugald River and in October 2021 took up the role of charge up operator.

Trevor Davis was 36 years old and joined Barminco in August 2020 as a shotcrete operator at Rosemont, before transferring to Dugald River as a charge up operator in November 2021.

Both Dylan and Trevor were valued team members and well respected across both sites and the wider Barminco team.

Mark Norwell added, “Our immediate and ongoing focus is on providing support to the families, friends and colleagues of Trevor and Dylan.

“Barminco has been operating at MMG’s Dugald River mine since early 2012 with members of our workforce residing in the local area. This tragic incident is devastating and will have a lasting impact on not only the families and friends of Trevor and Dylan but also on the workforce of Dugald River, the Cloncurry and Mount Isa communities and the entire Perenti workforce.

“The safety of our employees is an absolute priority for Perenti, as it is for the industry more broadly. I am devastated that the families and friends of our two workmates have lost their loved ones. This outcome is simply not acceptable.

“In collaboration with MMG and the relevant authorities in Queensland, we will work to understand the circumstances behind this tragic incident and what additional measures need to be put in place to prevent this type of incident happening again.

“We would like to thank everyone who worked tirelessly under very challenging conditions in the recovery of Trevor and Dylan.

“The rescue operation has now sadly completed. Our primary focus is that of support for the families and colleagues of Trevor and Dylan and in parallel completing a comprehensive investigation.”

Unless further material information comes to light, no further formal updates will be provided such that our full resources can continue to focus on supporting the families and conducting the investigation.

We ask that the privacy of the families of Trevor and Dylan, and their work colleagues, is respected during this deeply distressing time.

Further update to the incident at Dugald River

Further to our announcement yesterday, Perenti provides an update in relation to the incident at the Dugald River underground mine in Cloncurry, Queensland.

Rescue efforts continued overnight as Barminco worked closely with MMG and relevant authorities to undertake and progress the search and rescue operation.

The rescue team have employed the use of drones, void scanning technology and video imagery and this has enabled them to locate the light vehicle that we believe the two missing employees were driving.

The rescue team have been working throughout the night including with the use of heavy underground mining equipment to gain access to the vehicle.

Managing Director & CEO of Perenti, Mr Norwell, said the highly skilled mine rescue team is focused on executing the rescue operation as quickly and safely as possible.

“While the situation is still evolving, we are in contact with the family members of our missing team members and Perenti is providing support to their colleagues and rescue team.

“Everyone at Perenti is feeling the impact of this incident and whilst we hold deep concerns for the safety of our colleagues, we continue to be hopeful that a positive outcome can be achieved.”

We will provide further updates as relevant information becomes available.

Incident at Dugald River

15 February 1730 AWST

Further to the announcement made this morning, Perenti provides an update in relation to the incident that occurred earlier today at the Dugald River underground mine in Queensland.Unfortunately, two Barminco employees remain unaccounted for and the site emergency response team has been activated. Barminco is working closely with MMG and relevant authorities to undertake the search and rescue operation.

We can confirm the following:

  • Three of our employees were involved in an incident, approximately 125 meters below surface.
  • Two separate vehicles, a light vehicle and a drill rig fell into a void in a previously filled stope.
  • One of the employees, a drill rig operator, has been rescued and received medical attention for minor, non-life threatening injuries.
  • We believe the two missing Barminco employees remain 125 meters below the surface and we are using drone technology to understand the specific conditions of the area. This will enable us to ensure the safety of the emergency rescue team.
  • This drone is fitted with technology that can capture video and data regarding the size of the cavity where the light vehicle is located.
  • The rescue will commence post analysis of the data and in accordance with a rescue management plan.
Managing Director & CEO of Perenti, Mr Norwell, said the highly skilled mine rescue team is focused on executing a rescue operation as quickly and safely as possible.

“Our teams have been operating MMG’s Dugald River mine since 2012 with much of our workforce residing in the local area.  I know that a large proportion of the local Cloncurry community either work at the site or know someone who works at the site.  My thoughts are with the families and friends of our two missing colleagues, and with the Cloncurry community.”

Everyone at Perenti is feeling the impact of this incident and we continue to be hopeful that a positive outcome can be achieved. While the situation is still evolving, Perenti is also providing support to family members and colleagues of our missing team members. We will provide further updates as relevant information becomes available.

Perenti and ABB agree to jointly explore solutions to help mining customers decarbonise operations

Perenti has signed an agreement with leading global technology company ABB to collaborate and explore approaches to support net zero emissions targets for underground and open-pit mines. Experts from the two companies will work together to address electrification in mine hauling operations, power distribution, energy efficiency and power management.

Perenti’s significant mining expertise and technical capability will be complemented by ABB’s technology expertise. Together, the teams plan to explore business models and solutions to provide wider services for pilot, brownfield and greenfield mining customer projects to support the electrification of operations.

ABB has been calling for open collaboration within the mining industry and has taken action on several similar initial non-binding agreements to build commitments with original equipment manufacturers (OEMs), technology innovators and mining companies. Key relationships have subsequently been formalised, with technologies and solutions created as a result of these deals.

“Mining customers are committed to facing environmental, societal and economic challenges head on as they aim to decarbonise mining operations,” said Joachim Braun, Division President, Process Industries, ABB. “With ABB’s sector leading position in electric-mine technology development, and Perenti’s excellence and experience in mine development and mine operations, the scope of this collaboration is a perfect opportunity to make real progress in providing electric solutions that will decarbonise the industry.”

Mark Norwell, Perenti Managing Director & CEO with Joachim Braun, Divisional President, Process Industries, ABB

“ABB and Perenti share a vision to develop energy efficient solutions for the mining industry,” said Mark Norwell, Managing Director & CEO, Perenti. “By combining our experience across mining operations and digital solutions with ABB’s leading technologies we are focused on supporting the decarbonisation of mining through electrification. We look forward to working with ABB on this exciting new venture.”

ABB is committed to creating sustainable progress for today and for future generations by helping mining customers through their energy transition. ABB launched its ABB Ability™ eMine portfolio of technologies and methodologies last year, an approach to make the all-electric mine possible, with fully integrated electrification and digital systems from mine to port.

Perenti is committed to acting on climate change through promoting innovation, developing and deploying low emissions technology and working with its clients to implement projects that improve energy efficiency and reduce emissions. 

You can read the full story in our Investor Centre.

Perenti posts strong finish to FY22 and well positioned for further earnings growth in FY23

Perenti has delivered strong FY22 financial and operational results, headlined by a significant step-up in 2H22 earnings, and continued improvement in leverage.

Mark Norwell, Managing Director and CEO of Perenti, said: “Our strategic focus on maximising cashflow generation from our activities, effectively managing capital and driving operational performance, combined with the professionalism, dedication and resilience of our people, has enabled Perenti to deliver solid financial results for FY22, with a strong second half.

“Our 9,000 employees continue to show dedication, passion and resilience, collectively contributing to our improving performance. On behalf of the Board and Group Executive Committee, I thank them for everything they have done in what remains a challenging environment.

“We have continued to re-shape our business and are positioned to create a blended portfolio of complementary services through three operating divisions. This portfolio will be underpinned by our Contract Mining Division, which remains our core business and is the source of our major growth projects with globally recognised and respected brands.

“Our portfolio also includes the divisions of Mining Services and idoba, which will both support our contract mining activities as well as provide strong medium and long-term growth opportunities in new and future facing services, with lower capital intensity.

“Combined with a streamlined corporate centre, Perenti is positioned to deliver a step-up in cash backed profits in FY23, with further improvements expected to drive earnings growth through to FY25 and beyond.”

For more information on Perenti’s FY22 Full Year Results visit our Investor Centre.

Perenti announces strategic investment in idoba by Sumitomo Corporation

Perenti is pleased to announce it has successfully executed a share sale agreement in relation to a strategic investment by Sumitomo Corporation (Sumitomo) in idoba, Perenti’s technology informed services business. The transaction further strengthens Sumitomo’s commitment to the idoba business, following the Memorandum of Understanding announced in February 2022.

Under the Agreement, Sumitomo will acquire 10% of the issued shares in idoba for a total of $5.4 million. This implies a current idoba Equity Value of $54.0 million and Enterprise Value of $80.0 million reflecting the unique value proposition of the idoba ecosystem, and the significant embedded growth potential within both its consulting services and suite of Software as a Service products.

Mark Norwell, Managing Director and Chief Executive Officer of Perenti, said that the strategic investment in idoba by a world class counterparty is in recognition of the embedded value of idoba within Perenti, and the substantial growth opportunity that the business represents.

More information on the agreement can be found in our Investor Centre.