Perenti Secures Three-Year Contract with Barrick Gold for Hemlo Mine Operations
ASX-listed Perenti has announced that its underground mining division, Barminco, has signed a three-year contract with Barrick Gold to continue providing mining services at the Hemlo gold mine in Canada.
Located 350 km east of Thunder Bay in Ontario, Hemlo has been in production since 1989. Barrick transitioned the operation to a contract mining model in 2019, with Barminco serving as the primary underground contractor since then.
The new contract covers an initial 36-month period and includes two optional 12-month extensions, which could extend Barminco’s involvement at Hemlo until 2029.
Under the terms of the agreement, Barrick owns the existing fleet of underground equipment and will procure any additional machinery needed, reducing capital requirements for Barminco.
The contract is valued at over A$200 million and includes underground mine development, production, and support services.
Perenti Managing Director and CEO Mark Norwell highlighted the significance of the ongoing partnership, stating, “Our continued relationship with Barrick at the Hemlo gold mine for at least the next three years demonstrates the strength of our contract mining team in securing long-term agreements.
These relationships are built on delivering consistent value and aligning our operational success with our clients’ goals, fostering a collaborative environment.”
Norwell also noted the project’s low capital intensity, emphasizing that it is one of several such contracts within the organization, with their first capital-light contract initiated in 2018.
