Bellevue Gold awards $850M mining contract to Barminco at WA mine

• Four-year underground mining contract.
• Option for Bellevue to extend for up to a further 12 months.
• Transition planning has been undertaken.

Bellevue Gold (ASX:BGL) has awarded a four-year underground mining contract to Perenti subsidiary Barminco for work at the Bellevue mine in Western Australia. The contract, which commences on August 1, has an option for Bellevue to extend for up to a further 12 months and is valued at $850 million over the four years.

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Bellevue managing director Darren Stralow said comprehensive transition planning has been undertaken collaboratively between Bellevue and Barminco, including workforce, equipment, systems, and operational readiness, with a strong focus on safety, operational continuity and production stability.

Bellevue intends to provide both Barminco and current contractor Develop with performance incentives as part of Bellevue’s strategy to achieve an efficient handover.

“Barminco presented an extremely attractive proposal across safety, operational capability, and technical expertise, positioning Bellevue strongly for the next phase of operational delivery and growth,” Mr Strawlow said today.

“Their depth of underground mining experience and global scale will further support Bellevue as the operation continues to mature and optimise.

“I would also like to sincerely thank Develop and their team for their significant contribution to Bellevue over the past four years. Their commitment and partnership played an important role through the development, establishment, and ramp-up of the operation, helping position Bellevue as a leading Australian gold producer.”

The mobilisation and transition period will commence immediately in preparation for the contract handover.

Barminco has extensive experience in WA with current contracts at the nearby Gold Fields-owned Agnew gold mine as well as at Regis Resources’ Duketon underground mines, Ramelius Resources’ Dalgaranga mine, AngloGold Ashanti’s Sunrise Dam Mine and IGO’s Nova Bollinger mine.

Mark Norwell, MD and CEO of Perenti, said the award reinforces Barminco as a global leader in underground mining. “This award supports our strategy to deliver sustainable cash generation and future earnings growth.”

BGL is down -0.59% to $1.68. Mkt cap $2.508B.

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