BGC wins Northern Star Resources contract

BGC Contracting has been awarded a $30 million contract to develop the Ramone Gold Project for Northern Star Resources, a week after BGC confirmed it would still seek to sell the contracting business.

BGC Contracting will deliver initial infrastructure and mining services for the site, located 35 kilometres south-east of the Jundee Gold Mine.

Under the contract, BGC will provide the installation of site facilities, drill and blast, load and haul mining, dewatering services.

It will also deliver additional site works including roads, workshops, explosive compound and magazines, earthworks and site preparations.

It is the company's first gold mining contract in Western Australia in 10 years.

BGC Contracting chief executive Greg Heylen said the contract with Northern Star Resources put the company in good stead for future gold mining opportunities.

“We are very excited to secure this project opportunity with BGC Contracting growing its projects, both in commodity and geographical diversification,” he said.

“This is an exciting milestone in this strategy and we are very pleased to partner with Northern Star.

“Two years ago we embarked on a strategy to grow the business, grow our national footprint and to increase our commodity diversification. 

“The Ramone contract is a major achievement for our diversification strategy and allows us to extend our expertise in gold whilst providing new job opportunities for some 50-60 people on this greenfield project.”

Last week, BGC took its core building and construction divisions off the market, but confirmed its contracting business and property assets are still up for sale.

Mr Hamilton told Business News last week options included a possible sale, divestment of parts of the business and/or alternate operating models or structures.

BGC Contracting has 2,000 employees and a contract pipeline worth more than $1.7 billion.