Perenti Limited’s underground mining business, Barminco, has been awarded an underground mining contract with Bellevue Gold in Western Australia.
The $850 million contract – commencing in August – will run for four years with the option to extend for an additional year and focuses on underground development, production and support services.
With Bellevue‘s gold project highlighted as a long-life, high-quality underground gold operation, the contract is described as an important addition to Barminco’s portfolio in Australia.
“We are excited to partner with Bellevue as we focus on delivering enduring value for our clients, our people, the communities in which we work and ultimately our shareholders,” Perenti managing director Mark Norwell said in a statement.
“This contract award reinforces Barminco as a global leader in underground mining, further strengthening Barminco’s underground mining portfolio and earnings in Australia. This award supports our strategy to deliver sustainable cash generation and future earnings growth.”
Bellevue managing director Darren Stralow said the contract tendering was highly competitive, as shown by the strength of the tenders and the final result.
“Barminco presented an extremely attractive proposal across safety, operational capability, and technical expertise, positioning Bellevue strongly for the next phase of operational delivery and growth. Their depth of underground mining experience and global scale will further support Bellevue as the operation continues to mature and optimise,” Stralow said.
Barminco takes over the contract from Develop.
Bellevue said transition planning has been undertaken collaboratively between Bellevue and Barminco. It said the mobilisation and transition period will commence immediately in preparation for the contract handover, with Bellevue intending to provide both Barminco and Develop with performance incentives as part of Bellevue’s strategy to achieve an efficient handover.
“I would also like to sincerely thank Develop and their team for their significant contribution to Bellevue over the past four years. Their commitment and partnership played an important role through the development, establishment and ramp-up phases of the operation, helping position Bellevue as a leading Australian gold producer today,” Stralow said.
Barminco has extensive experience in Western Australia with current contracts at the nearby Gold Fields-owned Agnew Gold Mine as well as at Regis Resources’ Duketon underground mines, Ramelius Resources’ Dalgaranga Mine, AngloGold Ashanti’s Sunrise Dam Mine and IGO’s Nova Bollinger Mine.