Big contract win for Barminco

Mining contractor Barminco has won a $275 million contract to provide its services to the Northern Star Resources-majority owned Kundana gold mines in the Goldfields.

Barminco was awarded the initial three-year underground mining contract by the East Kundana joint venture (EKJV), in which Northern Star holds a 51 per cent stake, while Rand Mining and Tribune Resources together own the rest.

The scope of work under the contract, which will be one of Barminco’s largest, involves a full suite of underground mining services including development, production, bogging, haulage, maintenance and operation.

The work was previously done in-house by the joint venture.

“The contract adds to the strong platform of work we have across the business and we look forward to strengthening Barminco’s relationship with this important client,” Barminco chief executive Peter Stokes said.

“Barminco has been providing diamond drilling services at a number of Northern Star sites and we welcome the opportunity to now demonstrate our underground mining credentials at Kundana.

“Barminco’s performance, during what has been a challenging period for the sector, is a real testament to our entire workforce, including our operators, maintenance, administration and executive teams, who have all worked hard to ensure the business is in the best possible shape both operationally and financially.”

Barminco also announced today it had repurchased $US23.1 million in US high yield bonds, adding to a total of $US175.8 million purchased by the company since late 2014.

The company achieved revenue of $263.5 million for the half year to December 2015, and is on track to pass its FY15 result of $492.9 million.