Perenti in line for $38m Newcrest contract

Perth-based contractor Perenti is expecting to grow its presence in North America, after being approached by Newcrest Mining to work on a Canadian project.

Perenti, which made the announcement on Monday, said the 16-month contract would be worth about $38 million.

Its Barminco subsidiary has been issued with a letter of intent from Melbourne’s Newcrest to develop a 3.5-kilometre underground exploration decline at the Red Chris gold and copper project.

Mobilisation activities will occur in the coming weeks, Perenti said.

It considers the decline first stage works that will provide a platform for future underground exploration activities and potential block cave workings.

Perenti expects a contract will be finalised before mid-year.

Managing director Mark Norwell said geographic expansion was a key focus in the company’s 2025 strategy.

“[T]his early-stage work at Red Chris builds on our own regional growth capabilities after commencing in North America just over a year ago,” he said on Monday.

“The underground exploration works are a significant opportunity and puts the company in a strong position to access the much wider scope of works associated with the potential block cave development that Newcrest aims to progress towards in the coming years.”

Mr Norwell said Perenti continued to pursue high-quality growth opportunities with tier one producers.

The Red Chris project a 70:30 joint venture between Newcrest and Toronto-listed Imperial Metals Corporation, situated about 1,700km north of Vancouver.

Newcrest had acquired its stake in the project in mid-2019.

On Tuesday, shares in Perenti closed up 2.7 per cent to trade at $1.15.