Perenti’s Barminco Lands $120M Underground Mining Deal at Nevada Goldrush
Perenti’s underground mining arm, Barminco, has landed a $120 million contract at Nevada Gold Mines’ Goldrush Project, marking its first US underground mining venture and a strategic expansion into North America.
- Barminco awarded $120 million contract for underground mining in Nevada
- Contract spans 36 months, starting February 2025
- Services include underground development and ground support
- Goldrush Project targets 400,000 ounces of gold production by 2028
- No new capital expenditure required for initial contract scope
Barminco’s US Debut
Perenti Limited’s underground mining subsidiary, Barminco, has achieved a significant milestone by securing its first underground mining contract in the United States. The $120 million deal involves providing underground development and ground support services at the Goldrush Project, operated by Nevada Gold Mines (NGM), a joint venture between mining giants Barrick Gold Corporation and Newmont Corporation.
Located in Nevada, the leading gold-producing state in the US, the Goldrush Project is a new underground mine with ambitious production targets. It aims to produce approximately 400,000 ounces of gold annually by 2028, with a planned mine life of 24 years. This contract marks Barminco’s strategic entry into the largest hard rock underground mining market globally.
Strategic Expansion and Operational Synergies
The 36-month contract, commencing in February 2025, will leverage Barminco’s existing idle fleet, requiring no new growth capital for the initial scope. This efficient use of resources underscores Perenti’s operational discipline and readiness to scale in new markets without heavy upfront investment.
Perenti’s Managing Director and CEO, Mark Norwell, highlighted the significance of the win, noting the combined expertise within the group, including experience from Swick, another Perenti business operating in the US since 2009. This synergy is expected to support Barminco’s successful integration into the North American mining landscape.
Implications for Perenti and the Market
With this contract, Perenti not only diversifies its geographic footprint but also positions itself to capitalize on the robust demand for underground mining services in North America. The Goldrush Project’s scale and longevity provide a stable revenue stream and a platform for potential future contracts within the region.
Gabrielle Iwanow, President of Contract Mining at Perenti, emphasized the milestone nature of this contract, reflecting the company’s growth strategy and commitment to safe, productive operations. As Barminco expands its operational footprint, investors will be watching closely to see how this foothold translates into sustained growth and market share gains.
Bottom Line?
Barminco’s Nevada contract signals Perenti’s bold step into the US market, setting the stage for further North American expansion.
Questions in the middle?
- How will Barminco leverage this contract to secure additional US mining projects?
- What operational challenges might arise from entering the competitive North American underground mining market?
- Could this contract influence Perenti’s long-term capital allocation and growth strategy?
