Barminco signs $100m Aditya Birla deal

Mining contractor Barminco has secured a $100 million contract to provide underground mining services to Aditya Birla Minerals' Mount Gordon operation in Queensland.

The Mount Gordon copper operation is being re-commissioned because of the rebounding copper price after being placed in care and maintenance last year.

Barminco CEO Neil Warburton said the company expected to start mobilisation next month and expects it to be completed by 2012.

The contract covers total underground mine operating services including underground development and production.

"This is a significant new contract and we are very pleased with the result," said Mr Warburton.

"We look forward to working with Aditya Birla Minerals," he said.

Mr Warburton said total manpower requirements for the contract were 139 personnel.

See company statement below:

Barminco Limited has won a $100million contract to deliver underground mining services for Aditya Birla Minerals' Mount Gordon operations, located 130km North of Mount Isa in Queensland.

The contract covers total underground mine operating services including underground development and production.

The Mount Gordon copper operation was suspended in 2009 and placed on care and maintenance. With the rebound in the copper price, the operation is being re-commissioned at a scheduled monthly ore production rate of 110,000 tonnes and 440 meters of access development.

Barminco CEO Neil Warburton said mobilisation was underway with an expected start in early November 2010 and completion expected by 2012.

"This is a significant new contract and we are very pleased with the result," said Mr Warburton.

"As Barminco continues to grow and looks to expanding its international market presence, we recognise that this growth needs to be underpinned by strong domestic business. Securing this contract demonstrates an ongoing commitment to our domestic clients as we pursue these goals."

"Barminco is a leader in the underground mining services industry and we have a genuine commitment to delivering the highest standards in expertise and safety to deliver this project, and indeed across all projects.

"We look forward to working with Aditya Birla Minerals."

Mr Warburton said total manpower requirements for the contract were 139 personnel.