Barminco Secures A$300 Million Contract for Dalgaranga Gold Project

What's Happening?

Barminco, the underground mining division of Perenti, has been awarded a four-year contract valued at approximately A$300 million to provide underground mining services at Ramelius Resources' Dalgaranga gold project in Western Australia. This contract follows Barminco's successful completion of an underground exploration decline at Dalgaranga, which facilitated in-fill and mineralisation extension drilling. The decline will now transition to support production and further development. The contract encompasses underground development, production, and related mining services over a 48-month period, with an option to extend for an additional 12 months. Perenti has indicated that about $16 million in growth capital will be required in the 2026 financial year to support the work, which has already been factored into its financial guidance.

Why It's Important?

The contract award is significant for Barminco as it strengthens its position in the Australian mining sector, enhancing its scale and capacity to deliver benefits to clients and shareholders. The Dalgaranga project will contribute to Perenti's Australian earnings and sustainable cash generation, providing long-term value and certainty for Ramelius Resources. This development underscores the importance of strategic partnerships in the mining industry, where successful exploration and development can lead to substantial economic opportunities. The project also highlights the role of mining services companies like Barminco in supporting resource extraction and development, which are critical components of the Australian economy.

What's Next?

Barminco will focus on delivering safe and reliable production for Ramelius Resources at the Dalgaranga site. The company aims to continue its high-quality work, ensuring the successful execution of the contract over the next four years. As the project progresses, Barminco may explore further opportunities for expansion and development within the region, potentially leading to additional contract awards and business growth. Stakeholders, including Ramelius Resources and Perenti, will closely monitor the project's progress to ensure it meets production targets and contributes positively to their financial outcomes.