Perenti secures $140m extension

Perenti subsidiary Barminco has secured $540 million in contracts this month, with its most recent award being an extension of works with Melbourne-based MMG.

The works are associated with MMG’s Dugald River zinc mine in northern Queensland, where Barminco has been operating since 2012.

The company was first contracted by MMG in 2001 to provide underground mining services to its Roseberry polymetallic base metal mine in Tasmania.

The Dugald River variation, worth $140 million, extends the term of the contract by 18 months to the end of 2022 and includes two one-year options to extend further.

Barminco chief executive Paul Muller said the Dugald River mine was a significant project for the company.

Today’s announcement comes less than a week after Barminco secured further work with Canadian company Roxgold for its goldmine in Burkina Faso.

The contract extension was awarded to Barminco’s African Underground Mining Services division.

Barminco last week also received a $200 million, five-year development and production contract with Western Areas for its Odysseus nickel mine, as part of its broader Cosmos operations in the Goldfields.

The contracts bring the total work awarded to Barminco this month to $540 million, and adds to a $200 million contract awarded earlier this year with Canadian miner Barrick Gold.

Perenti managing director said the group had a robust tender pipeline of about $8.8 billion.

Shares in Perenti closed up 5.5 per cent to trade at $1.26.