Develop’s Big Contract Win: What Risks Lie Beneath the Waihi North Project?
Develop Global Limited has landed a significant A$200 million contract to build underground access tunnels at OceanaGold’s Waihi North Project in New Zealand, marking a major milestone for its mining services division.
- A$200 million underground development contract awarded to Develop
- Five-year project at OceanaGold’s Waihi North gold mine
- Contract commencement scheduled for first half of 2026
- Mobilisation phase to establish local workforce underway
- Partnership with Toronto-listed OceanaGold enhances Develop’s profile
A Major Win for Develop Global
Develop Global Limited (ASX, DVP) has announced a substantial contract win, securing a A$200 million underground mine development project with OceanaGold. The contract involves establishing access tunnels at the Waihi North Project, a significant gold mining operation located on New Zealand’s North Island. This five-year agreement is set to commence in the first half of 2026, positioning Develop as a key player in the underground mining services sector.
Strategic Partnership with OceanaGold
OceanaGold, a Toronto Stock Exchange-listed company with a market capitalization nearing A$9.6 billion, operates multiple mines globally and is recognized for its expertise in gold and copper production. Partnering with such a multinational mining house not only underscores Develop’s capabilities but also opens doors for future collaborations. Develop’s Managing Director, Bill Beament, emphasized the strength of their Mining Services division and the value of combining experienced underground mining specialists with a local workforce.
Mobilisation and Workforce Development
In the lead-up to the contract start, Develop is focusing on mobilisation activities, including the recruitment and training of a local workforce. This approach aims to blend local knowledge with Develop’s in-house expertise, ensuring operational efficiency and community engagement. The project’s scale and duration suggest a steady revenue stream and operational footprint for Develop over the coming years.
Implications for Develop and the Market
This contract win is a clear vote of confidence in Develop’s underground mining capabilities and could serve as a catalyst for further contract awards in the mining services sector. For investors, the deal highlights Develop’s growing influence and operational scale, while also reflecting broader trends of multinational mining companies outsourcing specialised underground development work to experienced service providers.
Looking Ahead
As Develop embarks on this significant project, market watchers will be keen to monitor execution progress and any potential follow-on contracts. The Waihi North Project itself remains a focal point for OceanaGold’s growth strategy, and Develop’s role in its development could prove pivotal.
Bottom Line?
Develop’s A$200 million contract marks a turning point, setting the stage for expanded mining services leadership.
Questions in the middle?
- What are the expected profit margins and cash flow timing from this contract?
- How will Develop balance local workforce integration with its specialist teams?
- Could this partnership lead to further contracts with OceanaGold or other majors?
