The contract extensions are for Gold Fields’ Agnew, AngloGold Ashanti’s Obuasi, and Roxgold’s Yaramoko underground gold mines
Perenti secures contract extensions worth A$420m for three different underground gold mines. (Credit: Michal from Pixabay)
Australia-based mining services company Perenti has secured contract extensions worth A$420m ($275.8m) for three different underground gold mines.
Awarded to Perenti’s underground mining businesses, the contract extensions are for the Gold Fields’ Agnew, AngloGold Ashanti’s Obuasi, and Roxgold’s Yaramoko underground gold mines.
The contract extension at the Agnew mine located in Australia is valued at approximately A$125m ($82m).
Under the contract extension, Perenti will continue underground development and production works at the Agnew underground gold mine for a period of 12 months.
Located in the Eastern Goldfields region, the Agnew mine site produces over 250,000 ounces of gold each year.
Perenti’s contract at the Obuasi underground gold mine located in Ghana is also extended by 12 months. It is worth about A$180m ($118m).
Production at the Obuasi mine started in 1897 and stopped in the last quarter of 2014.
The contract extension of existing underground development and production works at the Yaramoko underground gold mine in Burkina Faso is for two years.
This contract extension, which is valued at $A115m ($75.5m), requires no new growth capital for the execution.
The Yaramoko mine consists of two deposits namely, the 55 Zone and Bagassi South.
In September last year, Perenti secured an open pit mining services contract from Sandfire Resources, for the A4 open pit within the Motheo Copper Mine in Ghanzi, Botswana.
Perenti contract mining president Gabrielle Iwanow said: “With these contract awards combined with those previously announced, namely A$360 million related to the Sandfire Resources A4 project in Botswana and a further A$111 million related to three Australian surface and underground contract awards, the team has secured nearly A$900 million of revenue for the business.”