Perenti’s Barminco Lands A$200M Underground Mining Deal with Westgold
Perenti’s underground mining arm, Barminco, has won a significant three-year contract with Westgold Resources at the Great Fingall project, boosting its Australian mining portfolio and promising steady revenue growth.
- Three-year underground mining contract valued at approximately A$200 million
- Contract includes mine development, production, and related services
- Mobilisation to begin July 2025 with a capital investment of around A$16 million in FY26
- Strengthens Barminco’s footprint in Australian underground mining
- Potential 12-month contract extension option
Contract Win Strengthens Barminco’s Australian Presence
Perenti Limited’s underground mining division, Barminco, has secured a substantial new contract with Westgold Resources for underground mining services at the Great Fingall project near Cue, Western Australia. Valued at approximately A$200 million over three years, this contract marks a significant addition to Barminco’s Australian underground portfolio.
The scope of work encompasses mine development, production, and associated underground mining services, with mobilisation expected to commence in July 2025. The contract also includes a 12-month option to extend, providing potential for further revenue beyond the initial term.
Strategic Growth and Capital Investment
This contract aligns with Perenti’s strategic focus on expanding its underground mining operations in Australia and select international markets. The company plans to invest approximately A$16 million in growth capital during the 2026 financial year to support the project’s mobilisation and operational ramp-up.
Mark Norwell, Perenti’s Managing Director and CEO, highlighted the award as a testament to Barminco’s technical expertise and operational capabilities. He emphasized the contract’s role in enhancing Australian earnings and contributing to Perenti’s goal of sustainable, year-on-year cash generation.
Building Partnerships and Operational Excellence
Gabrielle Iwanow, President of Contract Mining at Perenti, expressed pride in beginning a new partnership with Westgold. She noted that the contract award reflects confidence in Barminco’s commitment to safe, efficient operations and technical strength. The collaboration aims to deliver value not only to the companies involved but also to the local communities around the Great Fingall project.
With this contract, Barminco reinforces its position as a leading underground mining services provider in Australia, a sector that remains competitive and critical to the country’s resource extraction industry.
Looking Ahead
As mobilisation begins mid-2025, market watchers will be keen to see how this contract contributes to Perenti’s financial performance and operational momentum. The potential extension option also leaves room for further growth, contingent on project outcomes and market conditions.
Bottom Line?
Barminco’s Great Fingall contract cements Perenti’s underground mining growth but leaves questions on future expansions.
Questions in the middle?
- What are the expected profit margins and cash flow impacts from the Great Fingall contract?
- How will the A$16 million capital investment be allocated across mobilisation and operations?
- What factors will influence the decision to exercise the 12-month contract extension option?
