Perenti secures a $520m contract for Evolution Mining’s Cowal gold mine

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The contract for all underground development and production works for Evolution Mining’s Cowal Underground project in New South Wales has been granted to Perenti’s Barminco Underground Mining business.

With activities in Australia, Africa, and North America, Barminco is an underground mining services company that is currently constructing an exploration decline and providing diamond drilling services at Cowal.

The Cowal operation, located 350 kilometres west of Sydney, is a world-class open pit gold mine that has been operated by Evolution since July 2015.

It is located in the Bland Shire, on the Wiradjuri People’s traditional territories. The Lachlan and Forbes Shires are also involved in the operation.

Adertisement

The award of the Cowal contract corresponds with Perenti’s objective of boosting earnings in top-tier regions and with top-tier clients, according to Mark Norwell, Managing Director and CEO.

“The Cowal contract represents one of the largest underground mining projects in Barminco’s history, generating revenue of nearly $520 million with an initial term of four years, from a contract commencement date in early July 2022,” Mr Norwell said in an ASX Announcement.

“This contract award represents not only a significant expansion and continuation of our first underground contract in New South Wales but is also a fantastic opportunity for Perenti to build on our strong working relationship with Evolution, one of Australia’s premier gold mining companies”.

According to Mr Norwell, the company will invest the capital required for this project by the end of 2022, with revenues and earnings ramping up in 2023 and beyond.

“Our purpose is to create enduring value and certainty for our clients, our people, our shareholders and the communities in which we work,” said Mining Chief Executive Officer, Paul Muller.

“At Cowal we will prioritise local and indigenous training and employment and local procurement opportunities while maintaining a transparent and consistent approach to community and indigenous engagement. We look forward to working with Evolution to develop a safe, sustainable, highly-productive world class operation in New South Wales.”

Image credit: https://evolutionmining.com.au/cowal/