Barminco, diversified mining services group Perenti’s underground mining business, has secured a three-year extension with Barrick Gold to continue providing mining services at the Hemlo gold mine in Canada.
The contract is valued more than A$200m ($132m).
Hemlo mine is situated around 350km east of Thunder Bay in Ontario. The project, operational since 1989, has produced more than more than 21 million ounces of gold.
In 2019, Barrick switched to a contract mining model for the mine by hiring Barminco as the main underground contractor.
The scope of works for Barminco will include underground mine development, production and mining support services.
As agreed, Barrick will expand its current fleet of underground equipment for the mine, if required.
The three-year contract includes two 12-month extension options, which if exercised, will extend Barminco’s services until 2029.
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.”
Last month, Spartan Resources awarded a new development contract for its Dalgaranga gold project in Western Australia to Barminco.
