Perenti secures $280m contract

Perenti’s surface mining business has won a five-year contract for work on AngloGold Ashanti’s Iduapriem mine in Ghana.

The new contract, worth $470 million, was awarded to a 60:40 joint venture between Perenti’s African Mining Services (AMS) division and Ghanaian contractor MAXMASS.

AMS’s share of the contract is worth $280 million.

Perenti managing director Mark Norwell said AMS continued to win quality projects.

Its most recent win was an open pit mining services contract for Sandfire's new T3-Motheo copper mine in Ghana, awarded to AMS in June.

“AMS has a reputation for delivering excellence while generating enduring value and certainty for stakeholders and the award of this new contract at a site where AMS has previously operated for AngloGold Ashanti provides further support for that reputation,” Mr Norwell said.

“We look forward to continuing to partner with AngloGold Ashanti.”

Perenti mining chief executive Paul Muller said AMS had provided services in Ghana for 30 years, including at the Iduapriem mine since 2012.

“We look forward to continuing to strengthen this partnership and also welcome the opportunity to work with our newest joint venture partner, MAXMASS,” he said.

“We have a strong commitment to support and build local capability to generate social and economic value for the regions in which we operate.

“Under this contract, and through the AMAX joint venture, we expect to continue to support the many local businesses that have become important suppliers and contracts to our operations under previous contracts.

“The joint venture also expects to employ more than 475 Ghanaians with approximately 40 per cent of the workforce employed from the surrounding local communities and the remaining 60 per cent from other regions within Ghana.”

Perenti's other subsidiary, African Underground Mining Services, is completing work on AngloGold's Geita mine in Tanzania.

Its shares closed up 2.9 per cent today to trade at 89 cents.