Westgold awards Barminco $200m contract

Perenti’s (ASX: PRN) underground mining subsidiary Barminco has signed a three-year contract with Westgold Resources (ASX: WGX) for works at its WA based Great Fingall gold mine.

The scope of works will cover mine development, production and all associated underground mining services at the site near Cue, WA.

Works are set to commence next month and the contract also includes an optional 12-month extension.

Perenti managing director and chief executive Mark Norwell says the company is excited to be partnering with Westgold and the Great Fingall project.

“This award highlights the depth and scale of Barminco’s mining and technical capability and supports the ongoing focus of growing our underground mining business in Australia and select regions internationally,” he said.

“This project further increases Australian earnings for Perenti and supports our ongoing focus on year-on-year sustainable cash generation. We look forward to delivering value for Westgold through our collaborative approach and focus on operational excellence.”

Westgold managing director and chief executive Wayne Bramwell says the Great Fingall mine is a smaller mine and as such lends itself to contract mining.

“It is a high grade, but comparatively simple, operation – with cost efficiency and productivity underpinned by a detailed mine plan, robust drill data, favourable ground conditions and excellent, established mine infrastructure,” he said.

“After a competitive tender process, Barminco was selected as our partner for Great Fingall due to its stand-out safety processes, mining efficiency and track record of delivery.

“With the setup complete, Westgold’s high performing team can now be deployed to our larger operating mines and we expect productivity and operational outputs to lift with their arrival.”