Perenti Limited’s Barminco business and Regis Resources Ltd have extended the current contract for the provision of underground mining services at the Duketon Operations, comprising both the Rosemont and Garden Well underground mines in the Goldfields region of Western Australia.

The alliance style agreement with Regis provides long-term visibility and certainty for both parties. As announced by Perenti on April 2, 2024, the initial contract had a term of three years and a mechanism to extend by a further 12-month period on a rolling basis.

The additional contract value is approximately A$180 million ($112 million), with the term extending for 12 months to March 30, 2028. The services involved include underground development, production and support services.

Regis recently opened the Balkau Decline at its Garden Well South underground mine, which is an underground extension of the Garden Well open-pit mine: a key production source at Regis’ Duketon gold project. Rosemont, meanwhile, includes the Rosemont open pit and underground mine, as well as Baneygo open pit. The Rosemont and associated surface deposits are mined using conventional open-pit mining truck and shovel methods. The Rosemont underground produces approximately 600,000 t/y and is mined using mechanised open stoping.

Earlier this week at Duketon, Regis and Barminco cut the portal for its Garden Well Main underground mine. Development works associated with its two newest underground mine developments, Garden Well Main and Rosemont Stage 3, are progressing well and both remain on schedule to produce at their full run rates in the 2027 financial year.

Mark Norwell, Managing Director and CEO of Perenti, said: “We strongly believe that collaborative and long-term client relationships create enduring value. The Barminco and Regis alliance agreement enables a framework for value creation and planning certainty for both parties. We are very pleased and appreciative to extend this agreement for another year and look forward to continuing to work with Regis.”

Gabrielle Iwanow, President of Contract Mining at Perenti, said: “Having recently visited both Garden Well and Rosemont to spend time with the team and see the quality of operations, I’m pleased that Regis and Barminco have agreed to extending the alliance for an additional year. Regis is one of Australia’s leading gold producers and we have developed a strong working relationship with them at their Duketon Operations. Barminco was proudly founded in Western Australia, and we continue to work closely with our clients around the world and here at home to deliver certainty and value.”