Perenti Limited announced its subsidiary, Barminco, was awarded a $30 million nine-month contract extension at IGO Limited’s Flying Fox mine.
The contract extension went into effect on 1 January 2023.
The Forrestania Operation, which is 100% owned by IGO, is located roughly 400 kilometres east of Perth, Western Australia, and contains both the Flying Fox mine and Spotted Quoll underground nickel mine. Since December 2004, Barminco has been the principal underground mining contractor at Flying Fox mine. Barminco will continue to provide all underground drilling, development, and mining activities at Flying Fox under the nine-month contract extension.
Perenti does not expect the award of the contract to have an impact on its current FY23 guidance range.
“In Australia, the labour market is still tight, and inflation and cost escalation remains stubbornly persistent, however strong and collaborative working relationships, like the relationship between IGO and Barminco, are key to the success of our business as well as the success of our clients. By working collaboratively with our clients, we continue to navigate and manage challenging macroeconomic conditions,” Perenti Managing Director and CEO Mark Norwell said.
Contract Mining President Paul Muller commented, “We have a very long and proud history of operating within the Forrestania Operation and we are pleased to have delivered value and certainty at the Flying Fox mine from a greenfield development project through a mature operating mine as it is today. We look forward to continuing our relationship with IGO, our largest client in Australia.”
