Join our daily newsletter At The Bell to receive exclusive market insights
- Perenti’s (PRN) underground mining subsidiary, African Underground Mining Services (AUMS), has secured a $235 million contract extension for AngloGold Ashanti’s Geita Mine in Tanzania
- The new two-year contract will come in to effect immediately and will see AUMS continue providing underground mining services
- Additionally, 20 per cent of equity in AUMS Tanzania will go towards a newly created mining support services company called BG Umoja Services
- BJ Umoja will operate as a respective 80:20 joint venture between Perenti and Geofields Tanzania, which will also supply mining support to the Geita mine
- Shares have dropped 0.9 per cent at $1.12 cents each
Perenti’s (PRN) underground mining subsidiary, African Underground Mining Services (AUMS), has secured a new $235 million contract extension at AngloGold Ashanti’s Geita Mine in Tanzania.
The Geita complex is located within the Lake Victoria Goldfields of the Mwanza Region.
The mine was originally open pit, however, in 2016 it transitioned to an underground operation.
Since then, AUMS has worked with AngloGold Ashanti to provide underground mining services.
The new two-year contract will come into effect immediately.
All up, the contract value is US$186 million (A$244 million) at 100 per cent share.
Mark Norwell, Managing Director and CEO of Perenti, commented on the deal.
“We are very pleased to be continuing our strong, long-term working relationship with AngloGold Ashanti at their flagship Geita Mine,” he said.
“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,” he added.
As part of the new contract, Perenti will transfer 20 per cent of equity in AUMS Tanzania to a newly created mining support services company called BG Umoja Services.
The company will operate as a respective 80:20 joint venture between Perenti group entities and local drilling services and mining supply company, Geofields Tanzania, which will supply mining support services to the Geita mine.
Shares have dropped 0.9 per cent at $1.12 cents each at 1:08 pm AEST.
