Barminco Holdings has been awarded two four-year contracts at Gold Fields’ Agnew gold mine in Western Australia, extending its existing underground mining services and diamond drilling agreements through to 2022.
The contracts are worth some A$335 million ($238 million) and include options for a further 12-month extension. They cover underground mining services at Agnew, including development and production activities and associated services at the Waroonga mine, and diamond drilling at both Waroonga and New Holland.
Barminco CEO Paul Muller said the contracts extended Barminco’s long-standing relationship with Gold Fields to 12 years, having commenced operations at Agnew in 2010.
“Over that time, we have completed approximately 50 km of development and 2.5 Mt of production,” he added.
Gold Fields Executive Vice President Australasia, Stuart Matthews said: “The Agnew mine continues to be a strong performer in the Gold Fields group, exceeding both production and cost guidance last year, whilst also increasing revenues.
“We are committed to ongoing investment to maintain its life and production profile, with a further $25 million exploration programme underway at Agnew this year, and investment in key infrastructure projects, including the new accommodation camp for our employees and contractors.”
Agnew regularly produces over 250,000 oz of gold a year.
Barminco is currently in the middle of being taken over by Ausdrill in a deal that values Barminco’s equity at A$271.5 million.