Tag Archives: Evolution Mining

Perenti’s Barminco to carry out development works at Evolution Mining’s Ernest Henry mine

Australia-based Perenti has provided an operational update and an upgrade to its financial year 2023 guidance to end-June 2023, which includes confirmation of a new contract for Barminco at Evolution Mining’s Ernest Henry mine in Queensland and a variation to expand its work scope at Regis Resources’ Garden Well mine in Western Australia.

The positive momentum noted in the operational update released on November 14 has continued as Perenti heads toward the end of the calendar year, with this momentum expected to continue into 2023, it noted.

“Since the release of the most recent operational update Perenti has secured improvements to commercial conditions across several Australian and African projects, including retrospective rate adjustments in relation to work that has previously been completed,” it said.

“These rate adjustments are the key catalyst in providing a further guidance upgrade one month after our previous upgrade.”

The contract at Ernest Henry (pictured) is for development work at the underground gold and copper mine. As Barminco transitions out of MMG’s Dugald River mine – where it has been carrying out development and production works – early next year, employees and capital resources from Dugald River will be mobilised to the new contract at Ernest Henry, it said. Underground development work at Dugald River, meanwhile, is to be taken on by Redpath Australia.

The Garden Well extension follows the commencement of underground mine development at the deposit in 2021.

On November 14, Perenti updated its FY23 guidance to forecast FY23 revenue of between $2.6-$2.7 billion ($1.7-1.8 billion). With the announcement of improved commercial conditions, and in consideration of securing work at Ernest Henry and scope growth at Garden Well, Perenti now forecasts that the company’s FY23 revenue will be between $2.7-$2.9 billion.

Mark Norwell, Managing Director and CEO of Perenti, said: “In addition to generating greater returns in FY23, we are focused on continuing to pursue business and project optimisation initiatives which will facilitate the delivering our 2025 strategy. Our strategy is designed to drive positive momentum in shareholder value well into the future. Perenti’s outlook is underpinned by our world-class Contract Mining Division, and the continued development of our Mining Services and idoba divisions. Our focus on generating enduring value for our people, clients and communities, will ensure we continue to deliver sustainable returns for our shareholders.”

Leveraging the intelligent mine concept for improved profitability, sustainability

The case for digitalisation is clear, according to AspenTech’s Jeannette McGill*, with digitalisation being critical for the metals and mining industry to achieve sustainability and operational excellence in the years ahead.

This is why the more forward-looking decision makers in the mining industry are embedding digital capabilities in their operations so they remain agile, competitive and profitable over the long term, while realising immediate and measurable benefits, she says. Technology providers have responded to the industry’s needs with solutions designed for the mining sector that directly address the dual imperatives of greater business efficiency and enhanced sustainability.

The intelligent mine

In their digitalisation initiatives, today’s operators also know that managing data more efficiently and effectively will be crucial in helping them to meet the challenges they face. Multiple difficulties remain in the way that organisations across the sector manage their data.

Senior mining company executives frequently make tough decisions but, in doing so, they must aggregate isolated pockets of data to generate insights that are relevant and actionable. For data to be available is no longer sufficient. The top priority for effective decision making is for appropriate management of diverse and disparate data sets in a range of locations.

The key is to integrate data and conduct high-level analysis with an understanding of the domain work requirements. Mining companies achieving this will establish what has become known as the intelligent mine. This is a concept that focuses on centralising information from multiple locations and business processes to reveal useful insights. It supports senior level decision making with designed-for-purpose analytical platforms.

Data held in 50 separate systems will not in itself drive operational efficiencies or support sustainable operations. By addressing several issues simultaneously, an organisation is more likely to move towards the intelligent mine.

First, though, businesses must implement automated data gathering systems to capture relevant data from various parts of the mining process and facilities. Second, organisations must have tools that detect bad data because only good data enables good decisions. They must ensure all changes are consistent, correct and improve data processing. Third, the business should assist the mine personnel by providing the capability to integrate data with built-in relevant analytics, so they process and act on insights in a meaningful time frame.

The predictive dimension

To create an intelligent mine, good data is important but only one part of the equation. Organisations must also analyse data in different ways within a context of the problem to be solved with appropriate predictive outcomes.

Companies need to predict the degradation of equipment that, if unattended, will lead to equipment breakdowns and unplanned maintenance, thereby adversely affecting both operational efficiency, reliability, sustainability and safety. Mining is equipment- and infrastructure-intensive with expensive machinery. It demands operational continuity for profitability and sustainability.

Bringing in prescriptive maintenance

Traditional preventive maintenance methods generally fail on the benchmark of equipment availability and performance. Earlier preventive maintenance efforts were unable to deliver sufficient time-to-failure warnings to deliver a significant impact on profitability.

That is where modern prescriptive maintenance plays a vital role. The technology monitors data from sensors on and around the machine to develop intense multi-dimensional and temporal patterns of normal operation, abnormal operation and explicit degradation patterns that precede breakdown. This provides early warnings, using artificial intelligence (AI)/machine learning digital technology to spot patterns that humans will never pick up.

Also surpassing human capability, the technology can assess the health of numerous machines every few minutes. It also delivers early warnings to maintenance teams, often with prescriptive advice on resolution. Facing tough challenges and spread thinly over large sites, workers benefit from warnings. Much of the intense repetitive analytics and engineering help them prioritise what matters most. Maintenance teams with such prescriptive maintenance tools ensure an intelligent mine makes significant progress in eliminating unplanned breakdowns.

Finding a solution

An asset performance management (APM) approach – with integrated prescriptive maintenance capability – ensures mines improve reliability, availability and uptime, simultaneously reducing the considerable cost of redundant equipment.

Operations teams often work on the assumption of lower availability by, for example, installing three machines when they only need two, or purchasing 10 trucks to ensure they always have eight up and running. These practices are now deemed too wasteful and have become unsustainable.

By embracing the most effective technology, mines can achieve benchmark reliability without the need for more people, equipment, or expenditure. Companies can operate at the required production levels and either mothball or switch off redundant equipment. Being able to do this with full confidence it will actually enhance overall outcomes, makes a significant contribution to the bottom line. It reduces emissions and increases sustainability.

Yet to develop an efficient digitalisation strategy, certain components must be in place. All too often, mines try to invest minimally in digital solutions to save money. Without domain-centric AI/machine learning analytics, this limits the reach and value technology can deliver. Successful digital strategies deploy solutions that draw on data from sensors and other sources. Enterprise resource planning systems, manufacturing execution systems, laboratory information management systems and advanced process control systems are all part of the mix, as well as general mine planning and design systems. Machine learning and other data science techniques require timely delivery of available data, so historian technology plays a vital role.

Across the industry, a growing numbers of mines are pursuing an APM approach. Australia-based gold miner, Evolution Mining, for example, has deployed Aspen Mtell software at the company’s Mungari Gold Operations, in Western Australia, to help reduce unplanned downtime and provide information to support productivity improvements.

Greg Walker, previously Evolution Mining Mungari General Manager, said: “Evolution’s Data Enabled Business Improvement program has achieved excellent results in recent years. With this new technology, Mungari Gold Operations can achieve further productivity improvements via increased asset availability.”

Looking to the future

Today’s mining industry is now sufficiently mature that it should fully embrace digital optimisation technologies. Operators that fail to adapt and build a strategy to utilise such technology are destined to struggle against competitors that do. Prescriptive maintenance delivers quick results by improving the use of existing capital assets and eliminating the surprise of unplanned downtime, which directly affects productivity, safety and sustainability.

The industry should understand how scalable prescriptive maintenance solutions add value to assets. This works as well with a single asset, conveyer system, a processing plant, a large mill, as it does with equipment across a worldwide enterprise. The truly intelligent mine empowers mining companies across a vast array of contemporary challenges. From reducing unplanned downtime and decreasing safety risks, to greater operational efficiency, sustainability and increased profitability, this approach will be essential for mining companies to surmount all their challenges in short and longer terms.

*Jeannette McGill is VP and GM of Metals & Mining at AspenTech

Epiroc and Rokion battery-electric machines reduce costs at Evolution’s Red Lake ops

Evolution Mining’s efforts to achieve net zero emissions by 2050 are already being witnessed at its Red Lake Operation (RLO) in Canada, where the company is pursuing fleet replacement and energy efficiency gains through deepening its partnerships with Epiroc and Rokion.

The pacts with the two battery-electric vehicle (BEV) service providers also extend to operational changes Evolution is making via fan timers for underground ventilation at RLO.

In partnership with Epiroc, Red Lake has taken the opportunity to leverage its offering of conversion kits to transform diesel-powered loaders easily and seamlessly to battery-electric driven operation, it said. RLO has ordered two of the converted diesel-powered Scooptram ST1030 machines for deployment underground with the first one delivered at the start of December 2021. The site has also ordered two Scooptram ST14 battery-electric loaders that are designed based on the diesel ST14 version, which are scheduled for delivery in 2022. This order was announced last year by Epiroc.

The Red Lake team has also purchased three Rokion electric light vehicles – two R100s and an R400. They have been risk assessed in the field, have dedicated charge stations and are capable of online data capture and storage, the company said.

Rokion says the R100 series includes a four-passenger crew truck and a two-passenger utility truck, with both models built on the same frame dimensions and available in ramp-ready configurations. The R400 platform, meanwhile, is able to accommodate three passengers in a utility vehicle setup or up to 12 in a passenger crew variant.

“The electric fleet brings the opportunity to save on maintenance, cooling and ventilation costs with reducing expenditures related to diesel and power usage,” Evolution Mining says.

“This cost saving and energy efficiency has similarly been seen in the recent changes to the underground ventilation fan timers, which are vital in clearing the drives, post blasting of headings. After assessing the timer programming, the functionality of the fan timer switch was altered so that operators can run them when needed rather than running automatically at irrelevant times.”

Evolution Mining taps AGL Energy Ltd for new power supply at Cowal

Evolution Mining Limited says it has secured a competitive, long-term power supply agreement for its Cowal gold operation, in New South Wales, Australia, under a new eight year partnership with AGL Energy Limited, commencing in January 2023.

Power costs represent approximately 7% of Evolution’s total costs. This agreement provides ongoing long-term security of power supply to Cowal at competitive pricing which is consistent with Evolution’s previously reported financial year 2023 guidance and financial year 2024 outlook, it said.

This long-term agreement also includes a renewable energy component.

Under the terms of the partnership with AGL, a growing portion of the power will be from renewable sources and provides Evolution a clear pathway to meeting its commitment to reduce energy (Scope 1 and Scope 2) emissions by 30% by 2030, the miner said.

Evolution’s Executive Chair, Jake Klein, said: “This is a very important milestone for Evolution. In a very challenging energy market, we have been able to secure both a long-term, competitively priced power contract for Cowal and a growing renewable component that provides us a clear pathway to reducing our energy emissions by 30% by 2030.

“We will continue to look for new ways to further reduce emissions from our fixed plant and mobile equipment to deliver on our net-zero commitment by 2050.”

AGL General Manager, Commercial and Industrial Customers, Ryan Warburton, said: “AGL has been working with Evolution Mining for a tailored solution for their Cowal Gold Mine to help lower their energy costs, provide ongoing long-term security of power supply and assist in reducing their carbon emissions.

“From leading food, agri-business and now to gold mines, AGL is working with our customers to develop bespoke renewable energy solutions to meet their changing needs. This announcement with Evolution Mining is another great example of how AGL is partnering with industry to help them reduce their carbon emissions and lower their energy costs. Through innovative partnerships like this, we are delivering on a low-carbon future with our customers and communities as we transition towards net zero.”

The Cowal mine produced 227,105 oz of gold in Evolution’s 2022 financial year. The company has a plan to expand production to 350,000 oz/y as the mine goes underground.

Barminco extends relationship with Evolution Mining at Cowal gold mine

Perenti Group’s underground mining business Barminco is to further strengthen its relationship with Evolution Mining, having been awarded a new A$60 million ($42 million) contract to carry out diamond drill work at Cowal Gold Mine operations in New South Wales, Australia.

The four-year contract will see Barminco use state-of-the-art drill rig technology to improve safety, performance and productivity, it says.

It’s the second contract to be secured by Barminco at the Cowal operations in two months, after recently winning a A$520 million underground and development contract.

This latter contract will see Barminco carry out all underground development and production works at the underground mine where it is currently developing an exploration decline.

Last year, the Evolution board and regulators approved the development of the Cowal Underground Mine, which is set to provide a higher-grade ore source that will be blended with the current E42 open pit and stockpile ore. The development is part of the group’s goal of Cowal producing 350,000 oz/y of low-cost gold and extending the operation’s mine life.

Gekko Systems improves carbon sampling accuracy, safety at Cowal gold mine

The technical team at Gekko Systems has released further data that, it says, supports the benefits of new technology that optimises carbon management systems in gold processing facilities.

Optimising carbon management in the carbon-in-leach (CIL) circuit reduces gold solution losses and improves gold circuit recovery. This is essential for sites needing to offset higher inflationary costs with improved revenue, Gekko says.

The case study, released today, reviews operational performance of Gekko’s Carbon Scout at Evolution’s Cowal Gold Operation in New South Wales, Australia.

The Carbon Scout is a self-contained, ground-level sampling system that measures carbon concentration, as well as pH, DO and, more recently, has an option to measure gold loading on carbon using XRF technology on an hourly basis. Optimising the Carbon Scout for site conditions allows for more accurate, reliable and repeatable measurement of the carbon inventory of the CIL
circuit, Gekko says. Automating data collection and process actions such as carbon transfer, meanwhile, reduces operator risk exposure and person-hours (previously dedicated to the manual data collection tasks).

Installation of the Carbon Scout at Cowal commenced in February 2019, with the Gekko Systems Digital Services and Technical team providing ongoing support – both onsite and remotely – in the initial months of the system’s operation to ensure maximum availability was achieved and Evolution Mining was receiving the full benefit of the Carbon Scout.

After a few months of integration with the SCADA system, the Carbon Scout was able to use the data and analysis to facilitate automated transfer of the carbon inventory within the circuit to maintain pre-determined concentrations, according to Gekko.

The Carbon Scout at Cowal has successfully reduced operator exposure to slurry containing hazardous materials including cyanide and improved sample authenticity by collecting a more representative and repeatable sample, Gekko said in the case study.

The other critical success achieved by the Carbon Scout is its ability to take a larger CIL tank sample that is more representative. This is achieved by the Carbon Scout drawing from deeper within the tank, where more superior slurry-carbon mixing occurs, and a larger sample of up to 20 litres is taken, which is 10-20 times the typical manual sample size. Additionally, the sample is extracted from a consistent point each time the Carbon Scout cycle samples from that tank.

Gekko concluded: “Optimising the Carbon Scout for site conditions allows for more accurate, reliable and repeatable measurement of the carbon inventory of the CIL circuit. Utilising these measurements and integrating with a plant’s SCADA system, the automatic control of carbon concentrations through the CIL circuit can be achieved. Automating data collection and process actions such as carbon transfer reduces operator risk exposure and man hours previously dedicated to the manual data collection tasks.

“The improvement derived from the utilisation of the Carbon Scout should lead to increases in circuit recovery by reducing soluble gold losses.”

The Carbon Scout was originally the brainchild of Curtin University’s Gold Processing team, led by Dr Teresa McGrath and Bill Staunton. Curtin University selected Gekko Systems as its commercialisation partner.

Staunton noted that “real-time data collection instrumentation and related analysis is essential to the future of the gold processing industry”.

Gekko Systems’ Technical Director, Sandy Gray, said: “The increasing installation base of the Carbon Scout globally is providing a fantastic baseline of evidence that supports the benefits of quality data collection and automation.”

Electric Mine Consortium launches Surface Long Haul EV Challenge

The Electric Mine Consortium (EMC) – made up of Evolution Mining, South32, Newcrest and a total of 21 major industry players – has launched a Surface Long Haul EV Challenge, calling on the automotive and electric vehicle (EV) industry for solutions in its mission to establish decarbonised mine sites.

The EMC’s call out to companies in the tech, renewable and manufacturing industries is looking for ground-breaking solutions to long haul EV trucks and associated charging infrastructure for mine sites and global supply chains.

Driven by collective demand for electric equipment across the EMC’s operating sites, spread over six continents, the consortium is looking to form synergies between mining and non-mining industries to accelerate decarbonisation solutions across the industry – the mining industry currently contributes 8% of the globe’s emissions.

EMC Founder and Director, Graeme Stanway, explains there’s currently no equipment and associated infrastructure solution that’s available at scale, in line with mining companies’ operational needs.

“The mining industry’s path to electrification is where the car industry was 10 years ago,” Stanway said. “We have the technology, but it needs acceleration and adaptation to meet the needs of varied mine sites across the world.”

He says there’s a big opportunity to recreate mining from a place of siloed communication between companies to a point where collective strategy drives the industry to drastically reduce and ultimately eliminate carbon emissions, through electrification.

“We have the world’s largest data platform of shared knowledge surrounding renewables in mining,” Stanway said. “Through the Surface Long Haul EV Challenge, we’ll be working to accelerate, pilot and convert all new fleets to electric with detailed use case studies for knowledge sharing across the industry.

“If we can solve this for our freight in mining, imagine the impact we can have on the rest of the transport market. Mining has a great opportunity to flip the perception…from being seen on the wrong end of the ledger, to being a leader.”

The EMC is now seeking businesses who can design or supply electric long-haul equipment solutions.

Draslovka eyes base metal leaching prize with MPS glycine technology

Draslovka Holding made its presence felt in the mining chemicals space about a year ago when it announced plans to acquire Chemours Company’s Mining Solutions business, a deal that has since seen it become one of the largest North American producers of solid sodium cyanide.

This acquisition, completed in December for $521 million, also laid the groundwork for a separate transaction that could see the Czech Republic-based company diversify into the in-demand battery metals arena.

Australia-based Mining & Process Solutions (MPS) had been on the Mining Solutions business radar for at least two years prior to the Draslovka transaction, according to James Stockbridge, Director of Draslovka Mining Solutions. Stockbridge, formerly of Chemours and DuPont, said that his team at Draslovka realised MPS had something on its books that could solve many of the challenges the industry was experiencing and transform mining solutions by using an amino acid called glycine.

“For more than a decade now, the industry has recognised that orebodies are becoming lower grade, processing them is becoming more complex and the environmental regulations associated with leaching are becoming stricter,” Stockbridge told IM.

“It is the challenge of our time, and we think MPS has something quite unique to offer here.”

With roots in the gold technology group at the renowned Curtin University in Western Australia, MPS’ glycine leaching technology has the potential to change both the gold and base metal leaching space.

In gold, MPS’ GlyCat™ process was invented to reduce cyanide consumption while maintaining gold recovery for gold ores from deposits containing nuisance copper. GlyCat has been designed to enhance the dissolution of gold and copper in gold/copper ores where glycine is used as a catalyst with cyanide in a cyanide-starved leaching environment. It doesn’t replace cyanide, but, in fact, enhances its leaching capabilities by dealing with the high-cyanide consuming copper within these gold-copper orebodies.

In copper, nickel, cobalt and zinc leaching, GlyLeach™ is able to leach the targeted metals with enhanced selectivity compared with conventional methods. It will solubilise copper, nickel, cobalt and zinc, while gangue minerals such as iron, manganese, silicates and carbonates remain in the leach residue, MPS says.

Both technologies are environmentally safe, work effectively at alkaline pHs and ambient temperatures (with no heating cost or pressure vessels) and come with low operating costs due to their low consumption and recovery/recycling traits, according to the company.

While it is the gold side of glycine leaching testing that has, so far, taken the headlines thanks to several trials with mining companies in Australia (including Evolution Mining) and the technology’s potential ability to partially replace cyanide in the leaching process, Stockbridge and his colleague Jackson Briggs (Corporate Development Manager for Draslovka) said Draslovka was most excited about what the technology could offer the base metal space.

Briggs said: “It gives us the opportunity to expand our leadership position in gold leaching agents into base metals. At the same time, it also allows us to incorporate our expertise in that chemistry and chemical manufacturing side of things.”

Stockbridge – not wanting to give away too much – hinted at how this latter opportunity could play out.

“The leaching technology will also influence the way you, for instance, operate, monitor and control the plant,” he said. “This process will be different, and we will be bringing in new technologies to cater to this.”

Considering Draslovka can produce glycine from its existing hydrogen cyanide production footprint, there is potential for a very smooth integration on the supply chain side of things.

Asked to quantify some of the benefits of the technology, Stockbridge was happy to point out GlyLeach’s potential to “simplify the flowsheet” for, say, nickel production, removing the smelting aspect and resultant ore transportation – providing capital and carbon footprint benefits.

Briggs added: “It can change a lot from ore-to-ore with GlyLeach, but, in a really strong business case, you are looking at a 25% reduction in processing costs.”

This is on top of a 10-35% improvement on the recovery side, compared with conventional leaching, Stockbridge said, citing “proof of concept” studies.

As for GlyCat, the sweet spot – as already hinted at – is in gold-copper orebodies where copper is a large cyanide consumer, with the technology allowing cyanide to work more efficiently and effectively.

Both technologies recently featured in OZ Minerals Ingenious Extraction Innovator challenge outcomes publication, while GlyCat has also been the subject of a one-off study looking at combining it with Sixth Wave Innovations’ IXOS® molecular imprinted polymer for gold extraction.

Australia’s Future Battery Industry Cooperative Research Centre, which is sponsored by the likes of Sandfire Resources, Barrick Gold, Coda Minerals (previously Gindalbie Metals) and Poseidon Nickel, is also coordinating some of the work towards commercialising GlyLeach.

There is a strong business case for both technologies first being deployed at scale on tailings deposits that have been deemed to have no associated value – a point both Stockbridge and Briggs acknowledged.

Briggs said: “In terms of accelerating the development of the technologies, there are tailings deposits and waste piles situated all over the globe with high amounts of precious and base metals that have not been extracted due to the limitations and economies associated with current processing technology. We could provide an economic way of extracting those.

“It would also provide us a project with much reduced start-up times compared with, say, a greenfield project.”

Stockbridge added: “We have carried out some work on this type of application before and believe there is the potential to extract 50% of the nickel that they couldn’t access with existing technology by using GlyLeach.”

From the mining company perspective, deploying a new technology on material already written off comes with a lot less risk too.

That is before appreciating that the material won’t have to be smelted on site, that the process produces no free cyanide and that gangue materials do not come out in solution.

It is no wonder the Draslovka duo are excited about the technology’s potential; GlyLeach in particular.

“The ability to help nickel and copper miners produce more metal to rescue some of these deposits that have been forgotten or under-developed because of technology limitations and be able to do so in a way that is more environmentally friendly is exciting.

“Potentially, this technology could help localise more electric vehicle supply chains by removing the need for smelting and providing a cost-effective and environmentally friendly means of extracting metals.

“We cannot wait to get started.”

MLG Oz extends service ties with Evolution Mining at Mungari operations

MLG Oz Ltd is set to extend its relationship with Evolution Mining Limited after being selected as its preferred service provider to service its Mungari operation, located in the Goldfields region of Western Australia.

The award of the new contract for the provision of haulage and integrated site services issued under Evolution’s wholly owned subsidiary, Evolution Mining (Mungari) Pty Limited, is for an initial contract term of two years, with a provision for a further one-year extension at Evolution’s discretion. The contract, MLG says, leverages its large Kalgoorlie-based resourcing pool and off-road haulage assets.

The Mungari district, now under the single ownership of Evolution, has a significant mineral endowment with a large portfolio of resources delivering long term feed options to the company’s centrally located Mungari processing infrastructure. Mungari produced 115,829 oz of gold at an average all-in sustaining cost of A$1,453/oz ($1,003/oz) in the financial year ending June 30, 2021.

MLG founder and Managing Director, Murray Leahy, said: “We commenced our first contract with Evolution less than a year ago and we are delighted to be awarded this opportunity to enhance our long-term relationship. This contract marks a significant milestone in our pursuit to provide superior integrated services to our customers.”

The new contract will see annualised revenue with Evolution effectively double to some A$15-$18 million, MLG said. The company’s scope of works builds on the recent integration of the Kundana operations into Evolution’s Mungari portfolio, with MLG engaged to service the combined sites bulk haulage and road maintenance requirements under a single service provider arrangement.

Barminco to help Evolution go underground at Cowal gold mine

Perenti’s Barminco underground mining business has been awarded the contract for all underground development and production works for Evolution Mining’s Cowal Underground project in New South Wales, Australia.

Barminco, a leading global underground mining services business, is currently developing an exploration decline and conducting diamond drilling services at Cowal.

Last year, the board and regulators approved the development of the Cowal Underground Mine, which is set to provide a higher-grade ore source that will be blended with the current E42 open pit and stockpile ore. The development is part of the group’s goal of Cowal producing 350,000 oz/y of low-cost gold and extending the operation’s mine life.

Perenti said the award of this new contract significantly expands Barminco’s scope at the site to include the development of a second portal, all underground development and production works, and associated underground mining services required to support the continued mill feed of underground ore.

Mark Norwell, Managing Director and CEO of Perenti, said the award of the Cowal contract aligns with Perenti’s strategy of increasing its earnings in top-tier regions and with top-tier clients.

“The Cowal contract represents one of the largest underground mining projects in Barminco’s history, generating revenue of nearly A$520 million ($373 million) with an initial term of four years, from a contract commencement date in early July 2022,” Norwell said.

“This contract award represents not only a significant expansion and continuation of our first underground contract in New South Wales but is also a fantastic opportunity for Perenti to build on our strong working relationship with Evolution, one of Australia’s premier gold mining companies.”

Norwell explained that, between now and the end of Perenti’s 2022 financial year, the company will commence investing the capital required for this project with revenues and earnings ramping up in the 2023 financial year and beyond.

“The project represents a significant improvement to our Australian underground earnings base and will generate strong project cash flows and returns in support of our capital allocation and investment,” he added.