Perenti secures $630m contract

A subsidiary of Perth-based mining services company Perenti has secured a new $630 million contract for work at a Newmont gold mine in Ghana.

Newmont Corporation awarded the contract for underground mining development, production activities and diamond drilling at the Subika underground mine for a 5-year period.

Perenti will undertake the scope of work through its UMA joint venture.

The 70-30 joint venture is between Perenti’s subsidiary African Underground Mining Services (AUMS) and Ghanian civil and mining contractor Rocksure International.

Under the terms of the new contract, Newmont will also be responsible for acquiring the fleet of equipment required for the project.

This strategy is expected to be beneficial in reducing the capital intensity of the project whilst still delivering strong returns, according to Perenti.

“With this new contract, Perenti will not only expand its tenure in Ghana but further its relationship with Newmont,” Perenti chief executive Mark Norwell said.

“We are very pleased that we will continue to deliver value and certainly to Newmont and our other stakeholders and beyond.”

Perenti has had a presence in Ghana since 1991, operating under Ausdrill before the company’s name change in 2018.

AUMS has had ongoing contracts at the Subika mine since 2017.

At market close, Perenti shares were trading up 10.39 per cent to $1.28.