Barminco awarded $450m contract extension at Sunrise Dam

The extension continues Perenti and AngloGold Ashanti’s 20-year partnership.
The extension continues Perenti and AngloGold Ashanti’s 20-year partnership.

Perenti’s (ASX: PRN) underground mining business Barminco has been awarded a three-year contract extension at AngloGold Ashanti’s Sunrise Dam underground gold mine in the Goldfields of WA.

The contract allows Barminco to continue underground development, production and mining support services to commence from October 1, 2024.

Perenti managing director and chief executive Mark Norwell says continuation of contracts is ideal as no new growth capital expenditure is required.

“AngloGold Ashanti is one of our largest clients, and we are proud to have worked with them for the past 20 years,” he said.

“Perenti has an excellent track record at extending existing contracts which we attribute to our collaborative relationship with our clients.

“Successful maintenance of our long-term relationships ultimately supports our business, as continuation of contracts does not require the upfront capital expenditure of new contracts.

“Ultimately this supports generation of free cash flow which continues to be a key focus of our strategy.”

Perenti contract mining president Gabrielle Iwanow says the partnership with AngloGold Ashanti delivers on Perenti’s purpose of creating enduring value and certainty.

“Our people are at the heart of our success and their dedication, innovative thinking and highly skilled efforts have again resulted in the award of a significant contract for a long-standing client within a great mine in WA,” she said.