Barminco, a subsidiary of Perenti, has been awarded a nine-month contract extension at IGO’s Flying Fox mine.
A part of the Forrestania operation in Western Australia, the Flying Fox underground nickel mine has employed Barminco as a primary contractor since December 2004.
The extension will allow the company to continue to provide underground drilling, development and mining activities at the site.
“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,” Perenti managing director and chief executive officer Mark Norwell said.
“By working collaboratively with our clients, we continue to navigate and manage challenging macro-economic conditions.”
The contract extension is effective from January 1 and has a value of approximately $30 million.
The Forrestania operation also includes the Spotted Quoll underground nickel mine, which Barminco also works on. Both mines are 100 per cent owned by IGO.
One of the highest-grade nickel mines in the world, Flying Fox has been in production since 2006 and operates at a depth of over 1km underground.
“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 a mature operating mine as it is today,” Contract Mining president Paul Muller said.
“We look forward to continuing our relationship with IGO, our largest client in Australia.”