How Perenti’s Barminco Won a $500M Contract to Power Agnew’s Future
Perenti’s underground mining arm, Barminco, has locked in a $500 million contract extension at the Agnew Gold Mine, reinforcing a decade-long partnership with Gold Fields and promising steady earnings.
- Barminco awarded a $500 million contract for underground mining at Agnew
- Contract term of 36 months starting January 2025, with a 12-month extension option
- Services include underground development, production, and related mining operations
- Contract capital requirements included in Perenti’s FY25 guidance
- Longstanding relationship with Gold Fields spans over 30 years
Contract Renewal Secures Operational Continuity
Perenti Limited’s underground mining subsidiary, Barminco, has successfully secured a significant contract extension to continue operations at the Agnew Gold Mine in Western Australia. Valued at approximately AUD 500 million, the agreement spans three years from January 2025, with an option to extend for an additional year. This renewal underscores Barminco’s entrenched position as a trusted mining services provider in one of Australia’s key gold mining regions.
A Partnership Built on Longevity and Performance
Barminco’s relationship with Gold Fields Limited, the mine owner, is a long-established one, dating back over a decade at Agnew and more than 30 years across various Perenti businesses. This enduring partnership reflects mutual confidence and a shared commitment to operational excellence. Barminco currently employs over 300 personnel at the site, highlighting the scale and importance of this contract to both the company and the local workforce.
Scope and Strategic Importance
The contract encompasses underground development, production, and related mining services, integral to sustaining Agnew’s output. The capital expenditure associated with this contract is factored into Perenti’s financial guidance for the fiscal year 2025, indicating the company’s strategic planning and resource allocation to support ongoing operations. This contract extension not only secures revenue streams but also reinforces Perenti’s footprint in the competitive Australian mining services sector.
Leadership Perspectives
Mark Norwell, Perenti’s Managing Director and CEO, emphasized the value of maintaining long-term contracts with high-calibre clients like Gold Fields, noting the importance of Australian operations in delivering reliable earnings and shareholder value. Gabrielle Iwanow, President of Contract Mining at Perenti, highlighted Barminco’s recent successful ramp-up in development and production at Agnew, expressing optimism about continuing to provide safe and productive underground services through their skilled Australian team.
Looking Ahead
With this contract extension, Barminco is well-positioned to sustain its operational momentum at Agnew, contributing to Perenti’s broader growth strategy. The optional 12-month extension offers flexibility to adapt to evolving operational needs and market conditions, while the ongoing partnership with Gold Fields signals stability in a sector often subject to volatility.
Bottom Line?
Barminco’s $500 million contract extension at Agnew cements Perenti’s steady earnings path and underscores the value of enduring client relationships.
Questions in the middle?
- Will Barminco exercise the 12-month extension option, and under what conditions?
- How will capital expenditure for this contract impact Perenti’s overall financial performance in FY25?
- What operational innovations might Barminco deploy to enhance productivity at Agnew?
