Barminco locks in contract extension at Hemlo

The contract’s total value equals more than $200 million and involves Barminco executing underground mine development, production and mining support services.

Under the terms of the existing contract, Barrick owns the current fleet of underground equipment and will procure any additional fleet required for the mine, significantly reducing the capital intensity of the project for Barminco.

“The continuation of our relationship with Barrick at the Hemlo gold mine for at least the next three years is another great example of how our contract mining team extends contracts over the life of a mine operation,” Perenti managing director and chief executive officer Mark Norwell said.

“The long-term nature of these relationships is built on a foundation of creating enduring value and certainty for our clients. This aligns our operational success with the goals of our clients and creates a collaborative working environment.

“The low capital intensity of this project is one of several capital light contracts we operate across the organisation, with our first capital light contract secured in 2018.”

In 2019, Barrick – one of the largest gold miners in the world – transitioned Hemlo from an owner operator model to a contract mining model. Since this change, Barminco has been the main underground contractor of the operation.

The initial contract was for a 36-month period, but also included two 12-month options to extend. Now that one of these options have been exercised, Barminco will operate at Hemlo until 2029.