Tag Archives: AUMS

Perenti banks ~A$420M of contract works with Gold Fields, AngloGold and Roxgold

Mine operation news, Mining services, Precious metals, , , , , , , , , ,

Perenti Limited’s underground mining businesses have been awarded contract extensions valued at circa-A$420 million ($276 million), in three separate projects across Australia and Africa, the company says.

The contract extensions include:

  • A 12-month, circa A$125 million contract extension to continue underground development and production works at the Gold Fields Agnew underground gold mine in Autsralia;
  • A 12-month, circa-A$180 million contract extension at AngloGold Ashanti plc’s Obuasi underground gold mine in Ghana; and
  • A two-year, circa-A$115 million contract extension of existing underground development and production works at the Roxgold Inc Yaramoko underground gold mine in Burkina Faso.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti said: “We pride ourselves on our enduring relationships, so we are especially pleased to be continuing our relationship with these long-term clients. Our Contract Mining division is now led by Gabrielle Iwanow and will continue to focus on safely delivering for our clients and on our strategic objectives. I look forward to providing an update on the business, including the excellent progress we have made on the integration of DDH1, as part of our 1H23 results which will be released to the market in February.”

Gabrielle Iwanow, President Contract Mining, said: “In my first few weeks at Perenti, I have been very impressed with the team’s technical capability and the operational performance that they deliver to our clients. I believe that it is these factors that underpin the strength and depth of our relationships.

“With these contract awards combined with those previously announced, namely circa-A$360 million related to the Sandfire Resources A4 project in Botswana and a further A$111 million related to three Australian surface and underground contract awards, the team has secured nearly A$900 million of revenue for the business. I am very proud to be leading and supporting the Contract Mining team as we collectively work towards delivering our 2025 strategic objectives.”

Perenti books exploration, development and production work with Australian miners

Mine operation news, Mining equipment, Mining services, Precious metals, , , , , , , , , , , , , , ,

Perenti says it has secured new work and contract extensions with the likes of Regis Resources, BHP Mitsubishi Alliance (BMA) and Catalyst Metal in Australia representing nearly A$150 million ($97 million) of revenue across its 2024 and 2025 financial years.

It has booked a A$70 million, six-month contract for the continuation of underground development and production works at the Regis Resources Garden Well and Rosemont underground gold mines. Barminco and Regis continue to progress collaboratively towards further and material contract extensions at these two mines, it says.

It has also sealed a A$27 million, 24-month contract for exploration surface drilling services at the BHP Mitsubishi Alliance in Queensland, while a A$14 million, 24-month contract has been awarded for underground diamond drilling works at Catalyst Metal’s Plutonic underground gold mine in Western Australia, subject to finalisation of contract terms.

Furthermore, AUMS (through UMA, a joint venture with Rocksure International) received a limited notice to proceed related to the initial underground development works at the Newmont Akyem underground gold mine in Ghana. The finalisation of contractual negotiations continues, however, once finalised it is forecast that the contract could represent circa-A$32 million of revenue over an initial term of 11 months, with a capital structure that is likely to be similar to that adopted for Newmont’s Subika project.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti, said: “The award of these contracts and the limited notice to proceed across both our underground and surface mining businesses demonstrates the diversity of our service offering and the strength of the relationships we share with our clients. Collectively these three contracts and the limited notice to proceed represent nearly A$150 million of revenue across FY2024 and into FY2025 and come after the recent announcement in which Perenti secured circa-A$360 million of revenue at the Sandfire Resources A4 project in Botswana.”

Perenti’s AUMS wins two-year extension at Roxgold’s Yaramoko mine

Mine operation news, Mining services, Precious metals, , , , , , , , , , ,

Perenti subsidiary, African Underground Mining Services (AUMS), has been awarded a contract extension at Roxgold’s Yaramoko mine in Burkina Faso.

The contract extension is valued at around A$200 million ($146 million) over two years, from December 2021 to December 2023. It follows on from the existing development and production scope currently being executed, taking the total contracted work-in-hand at Yaramoko to some A$350 million as at the end of August 2020, Perenti said.

AUMS is an operating business unit of Barminco and has been successfully operating at the mine since the development of the Zone 55 portal in 2015. The project, 200 km southwest of Ouagadougou, has now grown to include the Bagassi South mine.

In the June quarter, Yaramoko produced 32,812 oz of gold, according to Roxgold.

Barminco’s Chief Executive Officer, Paul Muller, said: “The high-grade Yaramoko complex is an important project for Roxgold, Barminco and the people of the Yaramoko community. We are very pleased to extend our contract with Roxgold to December 2023 and look forward to continuing to create enduring value and certainty for our client, employees, shareholders and the people of Yaramoko and Burkina Faso alike.”

Perenti Managing Director and Chief Executive Officer, Mark Norwell, said Barminco and AUMS, combined, are a global leader in hard rock underground mining, with this contract extension reinforcing this sector leading position.

AngloGold Ashanti blasts off at Obuasi Redevelopment project

Mine operation news, Mineral project development, Mining services, Precious metals, , , , , , ,

AngloGold Ashanti says the first week of underground development blasting has been completed at its Obuasi Redevelopment project in Ghana, as work to pour first gold by the end of the year gathers momentum.

The first blast, at about 7 pm on February 1, advanced development by around 4.2 m on the 2,700 level, which is accessed through the Obuasi Deeps decline from surface and is just over 700 m vertically below the decline portal, the company said. Benching and a number of additional face blasts have taken place since, with more than 14 m of advance recorded.

AngloGold Ashanti announced early last year it would invest $495-$545 million to recapitalise the iconic mine in Ghana, to develop its 6 Moz of high-grade reserve. The project will see Obuasi transformed into a modern, mechanised mine that will produce, on average, 350,000-400,000 oz/y of gold at all-in sustaining costs of $725-825/oz during the mine’s first decade of operation, according to AngloGold. Higher grades in the second decade of operation will see production improve further, it added.

AngloGold Ashanti, Chief Executive Officer, Kelvin Dushnisky, said: “The first blast was a significant milestone in transforming this important mine into a modern, productive operation. Our investment in Obuasi gold mine’s redevelopment will ultimately make this a key asset for Ghana, and for AngloGold Ashanti’s portfolio, for the long term.”

The project remains on track to produce its first gold by the end of this year, with ramp-up expected during 2020.

AngloGold Ashanti says it has committed to ensuring significant local content in the mine’s development and operation, through employment at all levels and procurement, notably through the creation of a joint venture between Australia’s AUMS and Ghana’s Rocksure, to undertake Ghana’s underground mining contract.

Development of the project is progressing as planned and it is expected that capacity will ramp up to around 1 km/mth of linear advancement in the second half of the year. Stoping operations are expected to start in the December quarter of this year as new production areas are accessed.

AUMS wins contract at AngloGold Ashanti’s Obuasi mine in Ghana

Equipment maintenance, Mine operation news, Mineral project development, Mining equipment, Mining services, Precious metals, , , , , , , ,

African Underground Mining Services (AUMS) has been awarded a $375 million underground mining services contract at one of West Africa’s oldest mines, Obuasi, in Ghana.

The five-year contract at the AngloGold Ashanti operation will see AUMS team up with Rocksure International, a Ghana-based mining contractor, under a 70:30 joint venture.

AUMS, owned 50:50 by Ausdrill and Barminco Holdings, will provide a full suite of underground mining services at Obuasi, with major capital equipment supplied by AngloGold. Works are expected to commence in the March quarter, with some 550 people due to be employed during the project term.

Blair Sessions, AUMS Chief Operating Officer, said the company was pleased to extend its relationship with AngloGold, adding AUMS and Rocksure would “deliver on this project using modern and efficient mining methods, supporting local suppliers and providing employment and training opportunities to Ghanaians”.

Graham Ehm, AngloGold Executive Vice President – Group Planning and Technical – said the contract award was a major milestone towards recommencing production at Obuasi and delivering on outcomes that would benefit the national, regional and local economies.

Earlier this year, AngloGold said it would spend $450-500 million to redevelop Obuasi into a modern, productive mining operation. The mine had been in limited operating phase since 2014.

Since commencing operations in Ghana eight years ago, AUMS has trained over 1,200 Ghanaians through a range of mining, engineering and apprenticeship programmes, AUMS said. Ausdrill, meanwhile, has a 27-year history in the country through its African Mining Services (AMS) subsidiary.

AUMS and AMS, combined, employ more than 1,800 people in Ghana across five projects. The two businesses have generated around A$2.8 billion ($1.99 billion) of revenue in the country.

Ausdrill is currently in the middle of taking over AUMS JV partner Barminco in a deal that values the latter’s equity at A$271.5 million. Last week, Ausdrill shareholders approved the acquisition, paving the way for the deal to be completed by the end of the month.