Perenti signs $155m in contracts

Mining services provider Perenti Global has secured $155.5 million in new and extended contracts for works in Australia and Africa through its surface mining operation.

The new works include a 12-month contract extension for existing works at Gold Fields' St Ives and Granny Smith projects in Western Australia, and a 12-month extension with Consolidated Minerals to support its mining operations and regional expansion projects.

Perenti, formerly Ausdrill, said it also secured a three-year contract extension with a major iron ore producer for reverse circulation and grade control drilling in WA.

Further, it won a three-year contract for production drilling services with Boggabri Coal Operations, part of Idemitsu Australia Resources Group, at its Boggabri mine in NSW.

The group will also expand its services for a mining contractor in Queensland, which Perenti said would double the contract value across the current three-year duration.

It has also signed an equipment hire agreement with E&P at Gold Fields' Damang mine in Ghana.

Perenti managing director Mark Norwell said the company had been targeting a strong pipeline of surface and underground work.

The latest contracts add to the $165 million in surface work announced by Perenti in December, including with Downer at Fortescue Metals Group’s Eliwana project in the Pilbara, and the $200 million contract recently secured through its Barminco subsidiary for works at Panoramic Resources’ Savannah nickel mine.

Earlier this month, Perenti said it was considering the purchase of Downer’s mining services division, but dismissed a report of a $700 million offer, citing the offer value was significantly above what was being considered.

The process is ongoing and, should a transaction eventuate, the group will consider a range of funding options, Perenti says.

Its shares were up 1 per cent at 1:30pm AEDT to trade at $1.48.