Tag: underground mining

Barminco wins first underground mining contract in USA for Nevada Gold Mines  

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We are pleased to announce that our underground mining business, Barminco, has signed a contract to undertake underground development and ground support for Barrick-operated Nevada Gold Mines (‘NGM’) at the Goldrush Project in Nevada, USA.  

Nevada is the leading U.S. state in gold production and NGM is a joint venture between Barrick Gold Corporation (61.5%) and Newmont Corporation (38.5%) who combined their significant assets across Nevada in 2019. In total, the NGM JV represents the largest gold-producing complex in the world and contains 10 underground mines and 12 surface mines.  

The Goldrush Project is a new underground development and is targeting production of approximately 400koz by 2028 with a 24-year life of mine.  

The contract details include: 

  • Contract value: Circa AUD $120 million 
  • Contract term: 36 months with commencement date from February 2025. 
  • Services: Underground development and ground support services. 
  • Capital requirement: Idle fleet to be utilised and no new growth capital required for initial scope. 

Mark Norwell, Managing Director & Chief Executive Officer of Perenti said “Securing the Goldrush underground project is an excellent achievement by our Barminco North America team. The Nevada Gold Mines JV is a leading gold mining complex, operating in areas with mining history since the mid-1800s. Fellow Perenti business, Swick has operated in the USA since 2009 and shared valuable experience with Barminco, demonstrating the combined strength of our group. Consequently, we are very pleased to be awarded this project and continue our strategic expansion into the North American market.” 

Gabrielle Iwanow, President of Contract Mining at Perenti said “The North American market is the largest hard rock, underground mining market in the world and this is Barminco’s first project in the USA. This win represents a milestone achievement for Barminco and our Contract Mining team as we execute our growth strategy. With an expanded operational footprint in North America, Barminco looks forward to continuing safe and productive operations for our clients in both the USA and Canada.” 

View the official ASX announcement and more in our Investor Centre

Perenti and Sandvik to collaborate in developing diesel-electric equipment

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Global mining services provider Perenti and Sandvik have signed a memorandum of understanding at MINExpo INTERNATIONAL® 2024 centered on developing cutting-edge diesel-electric equipment for underground mines. This collaboration aims to enhance sustainability, efficiency, and productivity in underground mining operations.

Under the agreement, the companies will work together to optimize underground diesel-electric loaders and trucks. Through Perenti’s leading underground mining business, Barminco, the collaboration will focus on improving Barminco’s operations and generating valuable insights and data to further refine Sandvik’s diesel-electric technology.

The initial phase of the collaboration involves establishing a shared vision for optimizing Sandvik’s diesel-electric machines to meet Perenti’s requirements. Perenti will contribute to the machine design and provide feedback at various testing stages, including pre-factory testing, operational testing and trial testing.

Mark Norwell, Perenti Managing Director & CEO, welcomed the agreement, saying Perenti was excited to explore the full potential of diesel-electric solutions as part of its journey to decarbonisation.

“We are constantly looking for ways to improve the working environment and boost underground safety, efficiency and sustainability,” he said. “Diesel-electric equipment has the potential to do this.

Collaborating with our partners is a critical step in the process, and we believe that working with Sandvik enables us to benefit from cutting-edge technology and also play a role in shaping the equipment that the wider industry will be using tomorrow. That’s good for us and it’s good for our customers.”

Mats Eriksson, President of Sandvik Mining and Rock Solutions, emphasized that the mutual benefits of collaboration often do lead to better products – and safer, more efficient operations.

“Perenti, through its businesses including Barminco, is one of the world’s leading mining services providers, and can provide us with design suggestions and fantastic insights into real-world mining conditions,’ he said. “Together, we can create equipment optimized for Perenti’s working conditions while also developing the most advanced diesel-electric machines available anywhere in the world.”

Diesel-electric mining equipment is seen by many within the industry as a way of achieving cleaner, more sustainable and more reliable mining, without the structural changes required for a fully electric operation.

Diesel-electric machines typically have a diesel engine that drives a generator which, in turn, provides electricity to motors responsible for movement and operating equipment. Unlike conventional diesel, diesel-electric machines generally have no torque converter and fewer rotating components, allowing for a more flexible design, requiring less maintenance and enabling lower operating costs while maintaining high availability.

Sandvik first announced last year that it was moving ahead with developing a diesel-electric range of underground loaders and trucks to complement its leading battery-electric offering. The decision followed the showcasing of Sandvik’s Toro™ diesel-electric truck demonstrator to customers at a technology workshop in Turku, Finland in 2022.

Las Vegas, Nevada, USA, September 25, 2024

Barminco secures underground contract extension with Barrick at Hemlo, Canada

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Perenti is pleased to announce that its underground mining business, Barminco, has signed a three-year contract with Barrick Gold Corporation to continue contract mining at the Hemlo gold mine in Canada.

Hemlo is located 350 kilometres 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.

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 AUD$200 million and involves underground mine development, production and mining support services.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti 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.”

Gabrielle Iwanow, President of Contract Mining at Perenti 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.”

View full ASX announcement

Barminco and MMG agree continuation of mining contract at Khoemacau Copper Mine

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We are pleased to announce that our underground mining business, Barminco, has finalised discussions regarding the existing 5-year mining services contract for the Khoemacau Copper Mine in Botswana with Khoemacau Copper Mining Proprietary Limited, a subsidiary of MMG Limited.

Khoemacau is one of the highest quality copper mines globally, with a strong case for expansion to meet growing global copper demand. Barminco has been operating at Khoemacau since the mine commenced in 2019.

Barminco is working to deliver on the current mine plan whilst MMG explores potential expansion opportunities at Khoemacau. Botswana is considered one of the most attractive mining jurisdictions in Africa and is rated investment grade by both Moody’s and S&P Global.

The contract details include:

  • Contract value:                    The remaining contract value is circa AUD$240 million.
  • Contract term:                     Continuation of existing contract, on revised terms, until 30 June 2025.
  • Services:                               Underground development, production, and mining support services.
  • Capital requirement:          Capital expenditure within existing Budget.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti said “We are pleased to continue working at Khoemacau. The expansion under consideration has the potential to supply increasing global demand for copper and we are proud to be working with MMG as they assess various future opportunities.”

Gabrielle Iwanow, President of Contract Mining at Perenti said “The continuation of this contract enables the Barminco team to continue working at Khoemacau under revised terms. The region surrounding the operations includes multiple resources beyond the current scope. Cumulatively, these resources have potential to support much higher production and maintain many years of mine life. We look forward to working with MMG to continue high quality operations at Khoemacau.”

View ASX Announcement

Perenti secures contract extension at Red Chris in Canada

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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

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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.”