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The Dugald River mine in Queensland. Image: James Knowler

Barminco has updated its development and production contract with MMG at the Dugald River zinc mine in Queensland, including an 18-month extension to the original agreement.

The 18-month contract extension will enable the hardrock underground mining services provider to continue working at Dugald River until 2022, with the option of two, one-year contract extensions in the future.

The Dugald River mine is one of the world’s top 10 zinc operations and produces 1.7 million tonnes of ore per annum on average. It mainly produces zinc concentrate, along with lead and silver by-products.

Barminco chief executive Paul Muller said the contract adde to Barminco and MMG’s extensive history.

“We are excited to continue our relationship with MMG, which began in 2001 at the Rosebery mine in Tasmania,” he said.

“Dugald River has been a significant project for Barminco since commencement during 2012, and this extension will take our valued relationship with MMG to over 20 years.”

Barminco has been operating at Dugald River since 2012.

Perenti managing director and chief executive Mark Norwell said its underground industry sector group had secured over $540 million in contract extensions this financial year.

“This is a great result for Barminco and MMG, extending their relationship to at least 2022,” he said.

“Perenti has a robust tender pipeline of $8.8 billion and our underground industry sector Group has secured more the $540 million in contract extensions this financial year.

“We look forward to continuing to deliver enduring value and certainty for MMG and the people of Cloncurry and the Mt Isa region.”