Perenti secures $235m underground mining services contract

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Perenti Global Limited announced that its subsidiary, hard-rock underground miner, African Underground Mining Services (AUMS), has secured a new two year contract to continue operations at AngloGold Ashanti’s Geita Mine in Tanzania.

Located within the Lake Victoria Goldfields of the Mwanza Region, the Geita Mine was originally an open pit mine before transitioning to an underground operation in 2016.

The A$235 million contract will see Perenti transfer 20% of equity in AUMS Tanzania to a newly created mining support services company called BG Umoja, a 80:20 joint venture between Perenti and local drilling services and mining supply company, Geofields Tanzania, which will supply mining support services to the Geita mine.

Mark Norwell, Managing Director and CEO of Perenti, said the company was pleased to be continuing its strong, long-term working relationship with AngloGold Ashanti at their flagship Geita Mine.

“This contract extension is expected to generate an improved earnings contribution for Perenti over the contract term,” he continued.

“Winning new contracts and extending existing contracts is one of our key strategic priorities and we continue to make great progress on the execution and delivery of our 2025 strategy.”

Perenti’s Mining Chief Executive Officer Paul Muller added: “Perenti first started operating in Tanzania in the late 1990’s and the award of the contract extension at the Geita mine provides us with a fantastic opportunity to continue to partner with, and support our numerous local businesses, suppliers and contractors.

“We look forward to expanding on these relationships as we seek to create enduring value and certainty for all of our stakeholders.”

Image credit: https://perentigroup.com/what-we-do/underground-mining/