Barminco books $200m contract extension at Hemlo

Perenti’s (ASX: PRN) underground mining business, Barminco has signed a three-year extension with Barrick Gold Corporation to continue contract mining at the Hemlo gold mine in Canada.

Hemlo, which has been in production since 1989, was transitioned to a contract mining model in 2019, with Barminco as the main underground contractor since.

The new 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.

Perenti managing director and chief executive Mark Norwell says this is another great example of how the 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,” he said.

“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.”

Perenti contract mining president Gabrielle Iwanow comments on the extension.

“We are pleased to continue working with Barrick and demonstrating our leading underground capability in the North American market,” she said.

“Barrick is an important client for Barminco and we look forward to continuing to partner with them to deliver safe production at Hemlo.”