Babylon’s Newmont Contract Raises Stakes in Competitive Mining Services Market
Babylon Pump & Power has secured a three-year contract with gold giant Newmont, promising steady revenue and reinforcing its position in the mining services sector.
- Three-year pump hire and maintenance contract with Newmont
- Contract valued at approximately $3 million annually
- Represents about 10% of Babylon's FY25 revenue
- Formalises a long-standing relationship with a Tier 1 mining client
- Follows recent fleet and capability expansions via acquisitions
A Strategic Win for Babylon
Babylon Pump & Power Limited (ASX, BPP) has announced a significant multi-year contract with Newmont Mining Services Pty Ltd, one of the world’s leading gold producers. Starting January 2026, Babylon will provide dry hire pumping equipment and maintenance services to Newmont’s Western Australian operations under a three-year agreement running through to the end of 2028.
This contract formalises a relationship that has already been in place for several years, now providing Babylon with strong revenue visibility and a reliable income stream. The deal is expected to generate around $3 million annually, which equates to roughly 10% of Babylon’s projected FY25 revenue, marking it as a material component of the company’s forward earnings.
Building on a Foundation of Trust
Babylon’s Managing Director, Michael Shelby, emphasised the importance of this agreement, highlighting the trust Newmont places in Babylon’s equipment and service delivery. The contract not only secures a steady revenue base but also aligns with Babylon’s strategy to deepen relationships with Tier 1 clients and secure repeatable, high-quality work across its core service lines.
Recent acquisitions of Matrix Hydro Services and Blue Hire have expanded Babylon’s fleet and technical capabilities, positioning the company to meet growing demand in the Australian resources sector. This contract with Newmont is a tangible outcome of those strategic moves, reinforcing Babylon’s footprint in a competitive market.
Implications for the Mining Services Sector
For investors and industry watchers, this contract signals Babylon’s growing stature as a trusted provider of specialised pumping and maintenance services. The steady revenue stream from a major client like Newmont reduces operational uncertainty and could serve as a platform for further growth opportunities.
While the announcement does not disclose detailed financial terms beyond revenue estimates, the materiality of the contract suggests Babylon is well-positioned to leverage its expanded capabilities and client base in the coming years.
Bottom Line?
Babylon’s new contract with Newmont sets the stage for sustained growth and deeper Tier 1 client engagement through 2028.
Questions in the middle?
- How will Babylon leverage this contract to expand services beyond pump hire and maintenance?
- What impact will this steady revenue have on Babylon’s overall profitability and cash flow?
- Could this deal lead to further contracts with Newmont or other Tier 1 mining companies?
