Barminco loses Northern Star work

Mining work at the Kundana gold operation will be done in-house from next month, after majority owner Northern Star Resources ended a $275 million contract with Barminco two years early.

Mining contractor Barminco said in a statement today that following discussions with Northern Star, it would leave the job on June 30 by mutual agreement.

The contractor said the decision was made following a change to the scope of work being performed at Kundana.

“Barminco and Northern Star have mutually agreed that the provision of underground mining services will transition back to Northern Star after the parties were unable to agree on new rates,” Barminco said.

“The majority of employees will be offered employment by the East Kundana joint venture or redeployed to other Barminco sites.”

Barminco was awarded the $275 million contract in June last year, for the provision of a full suite of underground mining services under an initial three-year term.

The work was previously done in-house by the joint venture, which comprises Northern Star with a 51 per cent stake and Rand Mining and Tribune Resources together owning the rest.