Barminco, Perenti’s underground mining business, has signed a three-year contract with Barrick Gold to continue contract mining at the Hemlo mine in Canada. The total contract value is worth more than A$200 million and involves underground mine development, production and mining support services.
Barminco has been the main underground contractor at Hemlo since Barrick transitioned the operation to a contract mining model in 2019.
“The continuation of our relationship with Barrick at the Hemlo gold mine for at least the next three years is another great example of how our Contract Mining team extends contracts over the life of a mine operation,” said Mark Norwell, managing director and CEO of Perenti.
“The long-term nature of these relationships is built on a foundation of creating enduring value and certainty for our clients. This aligns our operational success with the goals of our clients and creates a collaborative working environment.”
Under the terms of the existing contract, Barrick owns the current fleet of underground equipment and will procure any additional fleet required. The 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.
Hemlo is located 350 kilometers east of Thunder Bay in Ontario, Canada and has been in production since 1989.
Source: Perenti
