Tag Archives: Mark Norwell

Perenti’s idoba collaborating with Sumitomo on sustainable mining solutions

Automation, Environmental, IoT, Mining equipment, Mining services, Mining software, Sustainable mining, , , , ,

idoba, Perenti’s technology driven products and services business, says it has been collaborating with Sumitomo Corporation under a Memorandum of Understanding (MoU) for the co-creation and joint development of digital mining products for the advancement of sustainable mining practices.

Sumitomo is a major investment and trading group, consisting of over 900 companies in 112 countries. It will, Perenti says, leverage its global mining industry network to bring a unique user perspective that will complement Perenti and idoba’s mining services and technology expertise.

Under the terms of the MoU, Sumitomo and idoba will collaborate and jointly develop digital mining services, including mining process optimisation and carbon footprint management. Included within this is:

  • Mining process optimisation – by connecting and analysing mine performance data to predict future performance and provide decision support; and
  • Carbon footprint management – to generate predictive decision guidance that will help mine owners on their pathway to net zero carbon equivalent emissions, while optimising cashflow and performance against global emission standards.

Mark Norwell, Managing Director and CEO of Perenti, said: “Our agreement with Sumitomo is a vote of confidence in idoba’s industry-leading capability. The combination of Sumitomo, idoba and our contract mining expertise will support our business evolving to meet the needs of the ever-changing mining industry and global expectations.

“In idoba we are building an innovation-based business with a focus on helping clients achieve operational excellence and world’s-best environmental performance through product and service development.”

Sarah Coleman, Chief Executive Officer of idoba, added: “The mining industry recognises the value that advanced digital technologies bring to operational performance, asset efficiency and sustainable business.

“The MoU with Sumitomo will help us expand our suite of technology driven products and services to meet the mining industry’s demand for technology and sustainability to be integrated with mining domain expertise, and a human-centred approach.”

Last year, Perenti launched idoba, calling it a “new capital light technology-driven service offering” available to the mining and resources industry aimed at providing digital product and technology services to the sectors. This followed Pereti’s July 2020 acquisition of Sandpit Innovation and Improvement Resources (a consultancy) and, in April 2021, the buy of Optika Solutions (a software product and solutions development company).

Perenti offloads MinAnalytical to ALS, but retains interest in Chrysos PhotonAssay tech

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Perenti says it has signed an agreement to divest MinAnalytical Laboratory Services Australia Pty Ltd, a Perenti subsidiary, to ALS Ltd in a deal worth A$43.6 million ($31.2 million).

Of the total consideration for the transaction, A$39 million relates to shares in MinAnalytical, with an additional $4.6 million for prepayments and other financial adjustments. The transaction is anticipated to be completed prior to December 31, 2021.

Mark Norwell, Managing Director and CEO of Perenti, said the divestment was part of the ongoing strategic review of the company’s portfolio, including its services, operating regions and businesses.

“As we continue to focus on optimising the performance of our business and creating long-term sustainable value for our shareholders, we are pleased to have entered into a binding agreement for the divestment of our MinAnalytical business to ALS.”

He added: “ALS is a premier provider of analytical testing data worldwide and has a track record of acquiring and embedding complementary businesses and analytical technology to deliver value for their clients. MinAnalytical, and the significant new technology offering of the Chrysos PhotonAssay machines, is a natural fit for the ALS portfolio and will benefit greatly from the synergies and economies of scale that ALS can offer.”

MinAnalytical has several PhotonAssay units it is using for customers, with a high level of automated sample preparation in place.

Following the transaction, Perenti is to retain our 8% equity holding in Chrysos, Norwell said, explaining: “We, much like ALS, appreciate the significant current and future value proposition that the Chrysos business represents.”

He added: “In line with our significant focus on liquidity and capital management, the net proceeds of this transaction will be allocated across our portfolio to maximise shareholder value. We will continue to evaluate and progress a number of capital management initiatives designed to generate cash flow, streamline our portfolio, liberate cash, sustainably reduce our leverage ratio and efficiently allocate capital across our business.”

Perenti launches new technology-driven service business

Automation, IoT, Mining services, Mining software, , , , ,

Perenti Global Ltd has launched a “new capital light technology-driven service offering” available to the mining and resources industry aimed at providing digital product and technology services to the sectors.

idoba, a name that was co-created using human and artificial intelligence input, connecting the Greek word eidos (essence) and the Japanese term ‘ba’, meaning knowledge obilising space, is also expected to add value to Perenti’s current suite of global mining service offerings, the company said.

Mark Norwell, Managing Director and CEO of Perenti, said: “When looking to the future of the mining industry, it is evident that innovation and technology will play a much greater role in the way we do business and ultimately how we continue to generate value for all our stakeholders.

“With this in mind, it is with great pleasure that we launch idoba, our new technology-driven service business which will enable tomorrow by allowing us to respond to our clients’ evolving needs both today and into the future.”

In March 2019, Perenti published its 2025 Strategy, outlining five strategic pillars to guide business planning, shape the evolution of the company and develop the service offerings available to clients. The five pillars include operational excellence; strategic growth; organisational health; technology-driven future; and building financial capacity.

“Since its release, there has been significant progress made across all pillars, including building the foundations for a technology-driven services model,” the company said.

In July 2020, Perenti acquired Sandpit Innovation and Improvement Resources (a consultancy) and, in April 2021, Optika Solutions (a software product and solutions development company) was also added to the portfolio.

The total cost of these acquisitions was approximately A$13 million ($9.6 million) and includes a strong history of revenue generation, with a combined average annual revenue of circa-A$13 million over the past several years; broad and high-quality client base; significant talent with unique and deep experience across technology and innovation; and a platform for further growth leveraging existing digital systems and processes, Perenti said.

idoba is the culmination of Perenti’s strategic technological growth which, in addition to supporting the Perenti business, will provide digital product and technology service offerings to the mining industry with revenue and earnings generated from these services. Throughout the 2021 financial year, idoba performed to expectations, the company said.

Apart from contributing to Perenti’s revenue and earnings growth in the medium term, Perenti expects to leverage the innovation and technological skill sets of the idoba team to unlock productivity improvements across the company’s current suite of service offerings, the company said.

Sarah Coleman has been appointed Chief Executive Officer of idoba. Coleman is an experienced mining and management consulting executive with an impressive background that spans operations management and improvement, innovation and technology and asset management for a wide range of top-tier mining, oil and gas, manufacturing and health care clients, Perenti said.

AMS to continue servicing AngloGold’s Iduapriem with help of MAXMASS

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AMAX, a joint venture between Perenti Global’s surface mining business in Africa, African Mining Services (AMS), and Ghana-based mining services company MAXMASS Ltd, has been awarded a new circa-A$470 million ($346 million), five-year contract at AngloGold Ashanti’s Iduapriem gold mine in the Western Region of Ghana.

Perenti’s work in hand will increase by circa-A$280 million over the term of the contract, which is expected to commence immediately.

The new contract is structured as a 60:40 joint venture agreement between AMS and MAXMASS and represents AMS’ significant and ongoing commitment to developing and expanding the capacity and capability of local partners, Perenti explained.

Mark Norwell, Managing Director and CEO of Perenti, said the continued transformation of AMS, including the winning of quality projects underpinned by robust financial and commercial disciplines, remains a key strategic initiative in Perenti’s 2025 Group Strategy.

“We’re delighted to be extending our relationship with our long-standing client, AngloGold Ashanti,” Norwell said. “AMS has a reputation for delivering excellence while generating enduring value and certainty for stakeholders and the award of this new contract at a site where AMS has previously operated for AngloGold Ashanti provides further support for that reputation.”

Perenti Mining Chief Executive Officer, Paul Muller, said AMS had a long history of delivering operational excellence and value to clients, having provided mining services in Ghana for 30 years.

“We have provided surface mining services at the Iduapriem gold mine since 2012, establishing a successful partnership with AngloGold Ashanti,” he said. “We look forward to continuing to strengthen this partnership and also welcome the opportunity to work with our newest joint venture partner, MAXMASS.

“We have a strong commitment to support and build local capability to generate social and economic value for the regions in which we operate. Under this contract, and through the AMAX joint venture, we expect to continue to support the many local businesses that have become important suppliers and contractors to our operations under previous contracts. The joint venture also expects to employ more than 475 Ghanaians with approximately 40% of the workforce employed from the surrounding local communities and the remaining 60% from other regions within Ghana.”

Iduapriem is an open-pit mine with two circuits each comprising two-stage milling – a gravity circuit and a carbon-in-leach (CIL) plant. The gravity circuit recovers about 30% of the gold and the remainder is recovered by the 418,000 t/mth capacity CIL plant, according to AngloGold.

Perenti’s Barminco seals Savannah nickel project contract

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Perenti Global’s hard-rock underground mining subsidiary, Barminco, has finalised a contract with Panoramic Resources for development and production works at the Savannah nickel project in the Kimberley region of Western Australia.

The finalised contract represents a value of around A$280 million ($208 million) over a four-year contract term, Perenti said.

Under the terms of the initial letter of intent, announced on the April 6, 2021, Barminco commenced mobilisation and early mining works ahead of the schedule. With finalisation of the contract, Barminco expects development and production works will ramp-up over the coming six months to achieve full run rate of revenue early in the March quarter of 2022.

The contract will be serviced by new underground mining equipment including the use of tele-remote mining equipment, expected to deliver both safety and productivity benefits, Panoramic said.

Ore processing at Savannah is scheduled to begin in November with first concentrate shipment from Savannah targeted for the following month, Panoramic said. The building of an ore stockpile on the surface has already commenced and the company plans for this to reach 100,000 t prior to turning on the processing plant.

Perenti’s Managing Director and CEO, Mark Norwell, said: “We look forward to working together with the team at Panoramic to develop what we all expect will be Australia’s next long-life nickel producing mine. Despite the challenging labour market conditions in Western Australia, we have been successful in mobilising a labour force of approximately 110 highly skilled underground employees. We expect this to increase to 170 as the project ramps up. Securing this labour force has enabled us to commence early works ahead of schedule.”

Savannah has outlined a 12-year mine life with an average annual production target of 9,072 t of nickel, 4,683 t of copper and 676 t cobalt in concentrate. The mine is set to operate at average site all-in costs of A$6.36/lb of payable nickel, net of copper and cobalt by-product credits and royalty payments. This equates to roughly $4.86/Ib or $10,714/t.

The operation, with more than A$100 million already invested, has been maintained since the suspension of operations in April 2020 with a view towards operational readiness and project optimisation. This includes the recent completion of the FAR#3 ventilation raise, underground capital development on four mining levels at Savannah North and ancillary capital works on surface and underground infrastructure, which are currently being completed, Panoramic says.

Perenti boosts Botswana portfolio with Sandfire Motheo copper project contract

Base metals, Mineral project development, Mining services, Precious metals, , , , , , , , ,

Perenti Global Ltd says its surface mining business in Africa, African Mining Services (AMS), has been awarded the contract for open-pit mining services at Sandfire Resources’ Motheo copper project in Ghanzi, Botswana.

The contract, which is yet to be finalised, has an estimated value of $496 million over an initial seven-year-and-three-month term with a provision for a one-year extension.

Under the terms of the Mining Services Contract, AMS will identify a suitable local Botswana company or companies as a joint venture partner for the project and transition to the joint venture before the commencement of mining in early 2022.

Finalisation of the contract is contingent on the satisfaction of two primary conditions, namely Sandfire being granted a mining licence for the project; and finalising the terms of the Mining Services Contract.

Perenti Managing Director and Chief Executive Officer, Mark Norwell, said Motheo represented a game-changing growth opportunity for AMS and will substantially increase Perenti’s presence in Botswana.

“Growing our footprint in Botswana is aligned with our 2025 strategy, to further expand into stable mining jurisdictions and pursue quality projects. The benefit of adding Motheo to the Perenti project portfolio is the opportunity to leverage our existing in-region operational presence at Zone 5 (owned by Khoemacau Copper Mining) as well as partnering with Sandfire to develop Botswana’s next large-scale, highly productive, world-class copper mine.

“The Motheo project is another positive step in the ongoing transformation of our AMS business as we seek to create value and certainty for our client Sandfire and the Ghanzi community.”

Motheo is in the Kalahari Copper Belt, an emerging and relatively underexplored copper producing region. It is around 200 km to the southwest of the Khoemacau Zone 5 project, where Perenti, through its subsidiary Barminco, is currently engaged to undertake underground mine development works.

Motheo is held through Sandfire’s subsidiary, Tshukudu Metals, and was approved for development by Sandfire’s Board of Directors in December 2020 following completion of a definitive feasibility study (DFS) on a base case of a 3.2 Mt/y operation with expansion potential.

The DFS outlined an initial 12.5-year operation, underpinned by an updated ore reserve of 39.9 Mt at 0.9% Cu and 12.2 g/t Ag for 360,000 t of contained copper and 15.6 Moz of contained silver, producing on average circa-30,000 t/y of contained copper and 1.2 Moz/y of contained silver over the first 10 years of operations.

Perenti Mining Chief Executive Officer, Paul Muller, said: “Through this commitment and the establishment of a local joint venture partnership, we expect that more than 95% of the workforce will be citizens of Botswana. Furthermore, and leveraging our existing Maun based state-of-the-art mining training centre, our workforce will have access to the latest mining techniques and technology to enable the creation of a safe, highly skilled and productive workforce to support economic growth and diversification within Botswana.”

Muller said the company was also excited by the opportunity to deploy “future-focused mining technology initiatives” on the project that not only provide expected productivity and safety benefits to Sandfire but are also aligned with the two firms’ sustainability goals.

Perenti anticipates pre-production work to commence in late 2021 with mining to commence in early 2022.

Perenti’s AUMS wins two-year extension at AngloGold’s Geita operation

Mineral project development, Mining services, Precious metals, , , , , , ,

Perenti Global’s African Underground Mining Services (AUMS) has secured a new two-year contract to continue operations at AngloGold Ashanti’s Geita Mine in Tanzania.

The two-year agreement will take effect immediately and comes with a value of $186 million (100% share).

As part of the new contract, Perenti will transfer 20% of equity in AUMS Tanzania to a newly created mining support services company called BG Umoja Services Limited. BG Umoja is an 80:20 joint venture between Perenti group entities and local drilling services and mining supply company, Geofields Tanzania Limited, which will supply mining support services to the Geita mine.

The establishment of the BG Umoja JV demonstrates Perenti’s ongoing commitment to support and build local capability, generating enduring social and economic value for the regions in which the company operates, Perenti said.

The Geita Complex is located within the Lake Victoria Goldfields of the Mwanza Region, about 120 km from Mwanza and 4 km west of the town of Geita. The Geita Mine was originally an open-pit operation, however, transitioned to an underground operation in 2016. Since this transition, AUMS has worked collaboratively with AngloGold Ashanti to provide a full suite of integrated underground mining services for the mine.

AUMS Tanzania, supported by Geofields, will continue to provide AngloGold Ashanti with underground mining services while facilitating the development of improved underground mining technical capability within the broader Tanzanian workforce.

Mark Norwell, Managing Director and CEO of Perenti, said: “We are very pleased to be continuing our strong, long-term working relationship with AngloGold Ashanti at their flagship Geita Mine.

“Furthermore, this contract extension includes the addition of Geita Hill, a new underground development within the Geita Complex, which will see a steady increase in our scope of works and revenue run rate as the development ramps up from a single heading decline into multiple work areas and then into production later in 2021. This contract extension is expected to generate an improved earnings contribution for Perenti over the contract term.”

Perenti’s Mining Chief Executive Officer, Paul Muller, said Perenti first started operating in Tanzania in the late 1990s and the award of the contract extension at the Geita mine provided it with an opportunity to continue to partner with, and support numerous local businesses, suppliers and contractors.

“We look forward to expanding on these relationships as we seek to create enduring value and certainty for all of our stakeholders,” he said.

Barminco bags A$200 million contract extension at Gold Fields’ Agnew mine

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Perenti’s hard-rock underground miner Barminco says it has been awarded a A$200 million ($153 million) contract extension at Gold Fields’ Agnew gold mine in Leinster, Western Australia.

The extension is for full underground mining services, driven by an increase in development and production “physicals” at the mine, Perenti said, adding that Barminco has been operating at Agnew since 2010.

Perenti Managing Director and Chief Executive Officer, Mark Norwell, said: “We are delighted to be extending our relationship with our long-standing client, Gold Fields.

“Part of our 2025 group strategy is to organically grow this part of our business. The recent achievements of Barminco in this regard are a result of the strong relationships we share with our clients and the value we create for them through our world-class underground mining capabilities.”

Perenti Mining Chief Executive Officer, Paul Muller, said: “We have been providing safe and efficient underground mining services at Agnew for more than 10 years and we are very pleased to be supporting Gold Fields with their increased development and production requirements. This extension will take our current term out to December 2023.”

Barminco wins 18-month, A$140 million contract extension at MMG’s Dugald River mine

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Barminco has agreed the terms of a variation and extension to its development and production contract at MMG’s Dugald River zinc-lead mine, in north Queensland, Australia.

In addition to several amended contract conditions, the variation extends the term of the contract by 18 months to December 31, 2022, with two, one-year options to extend further. The value of the 18-month extension for Perenti’s hard-rock underground miner is approximately A$140 million ($103 million).

Barminco has been operating at Dugald River since 2012. IM recently reported MMG and Barminco were trialling an automated Sandvik LHD at the mine to further boost production.

Barminco’s Chief Executive Officer, Paul Muller, said: “We are excited to continue our relationship with MMG, which began in 2001 at the Rosebery mine in Tasmania. Dugald River has been a significant project for Barminco since commencement during 2012, and this extension will take our valued relationship with MMG to over 20 years.”

Perenti Managing Director and Chief Executive Officer, Mark Norwell, said Perenti had a “robust” tender pipeline of A$8.8 billion and its Underground Industry Sector Group had secured more the A$540 million in contract extensions this financial year.

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

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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.