Perenti’s hard-rock underground mining subsidiary, Barminco, has been selected as the preferred contractor by Panoramic Resources at its Savannah nickel-copper-cobalt project in the Kimberley region of Western Australia.

The contract, worth around A$200 million ($135 million), will see Barminco carry out mine development, production, and haulage over a three-year term. Work is expected to commence in March 2020.

Barminco anticipates it will employ around 170 people for the project and use predominately new equipment, which has been included in the capital guidance previously provided, to deliver the project.

Savannah, 110 km north of Halls Creek in Western Australia, saw mining operations recommence in December 2018, with the first shipment of concentrate departing Wyndham in February 2019. The miner is currently developing the higher-grade Savannah North orebody focusing on high speed development and a ramp up to full production in 2020, Perenti said.

Perenti Managing Director, Mark Norwell, said: “This project demonstrates our ability to capture organic growth opportunities, with the Barminco business now well integrated into the Perenti group whilst further embedding itself as a leader in underground mining.”

Underground Chief Executive Officer, Paul Muller, added: “We look forward to working closely with Panoramic Resources in driving the development of the Savannah North orebody safely and efficiently as it ramps up to full production.”