Perenti says its Barminco subsidiary has been awarded a nine-month contract extension at the Flying Fox mine, in Western Australia, owned and operated by IGO Ltd.

The contract extension is effective from January 1, 2023, and has a value of approximately A$30 million ($20.2 million) over the nine-month term.

Mark Norwell, Managing Director & CEO of Perenti, said: “In Australia, the labour market is still tight, and inflation and cost escalation remains stubbornly persistent, however strong and collaborative working relationships, like the relationship between IGO and Barminco, are key to the success of our business as well as the success of our clients. By working collaboratively with our clients, we continue to navigate and manage challenging macro-economic conditions.”

Paul Muller, President of Perenti Contract Mining, added: “We have a very long and proud history of operating within the Forrestania Operation and we are pleased to have delivered value and certainty at the Flying Fox mine from a greenfield development project through to a mature operating mine as it is today. We look forward to continuing our relationship with IGO, our largest client in Australia.”

IGO became the owner of the Flying Fox mine, part of the Forrestania Operation, in 2022, as part of the acquisition of Western Areas. It remains one of the highest grade nickel mines in the world. Production commenced in 2006, and the mine now operates at depths of over 1 km underground.