Global contract mining group, Barminco has been awarded a contract extension to carry out underground mining development and production activities at Western Areas’ Spotted Quoll and Flying Fox nickel mines in Western Australia. The extension is for an initial two year term, with options to extend for a further two additional one year terms. The contract value for the initial term is approximately A$190 million. The extension follows Barminco being awarded a one year contract from Western Areas for diamond drilling at the Flying Fox mine in August 2014.

Barminco is approaching ten years as Western Areas’ underground mining contractor of choice, having started at Flying Fox in March 2005 and added Spotted Quoll in May 2011. The contract extension was awarded following successful negotiations between the parties and was based on a proven delivery of safety, productivity and price. Barminco Chief Executive Officer Peter Stokes said: “We have developed a close relationship with Western Areas and have gained an intimate knowledge of their mines over the last decade, so it is very pleasing to be able to build on that with another contract extension.”

He adds: “While price is obviously a very important factor, our customers do not award these contract extensions unless we are performing up to standard, both in terms of safety and productivity. The contract extension is also a great reflection of our employees’ ability to perform tasks both safely and efficiently at on site, and they are looking forward to continuing to make the operations a success.” Barminco employs approximately 210 staff at the Flying Fox and Spotted Quoll sites, which achieved approximately 650,000 tonnes of ore mined for the year ended June 30, 2014.