Byrnecut preferred for $440m Saracen contract

Saracen Mineral Holdings has named private company Byrnecut as its preferred contractor for a contract, valued at $440 million, for underground mining services at its Carosue Dam gold operation north of Kalgoorlie.

Byrnecut will undertake development and production stoping work at the Karari and Deep South underground mines at Carosue under an initial four-year term, with Saracen having the option to add an extra year to the contract.

The deal is subject to agreement of final terms and conditions.

“This is the largest single contract in Saracen’s history, with the scale and duration of the contract driven by our confidence in a large and rapidly growing gold system at Carosue Dam,” Saracen managing director Raleigh Finlayson said.

“I would also like to thank the current contractors RUC Cementation Mining Contractors and Pybar Mining Services for their substantial contribution to the impressive ramp-up of the Karari and Deep South underground mines to more than 160,000 ounces of gold per annum.”

Saracen shares were 2.2 per cent lower to $1.31 each at 11am.