Takeover target and global hard-rock underground mining services provider Barminco Holdings has won a A$700 million five-year contract extension at AngloGold Ashanti Australia’s Sunrise Dam gold mine.
Barminco – which is currently being acquired by competitor Ausdrill – has partnered with AngloGold Ashanti at Sunrise Dam since start of underground operations in 2003, when the first portal was cut.
Plans are now in place to increase annual production well beyond the current rate of approximately 3 million tonnes per annum.
Barminco Chief Executive Officer Paul Muller said the Company had worked hard to fully optimise productivity and efficiency, and deliver industry-leading safety and operational performance at the Sunrise Dam mine.
This contract extension speaks volumes about our commitment to AngloGold, the relationship we have built with them and the results that have been delivered at Sunrise Dam over the past 15 years,” Mr Muller said.
“We are very pleased to extend our relationship and continue work to achieve our shared vision with AngloGold to further increase annual production using our latest equipment and cutting-edge technologies.”
Last month, Ausdrill announced the acquisition of Barminco to create Australia’s second largest mining services company by acquiring all the company’s equity for 150.7 million Ausdrill shares and $25.4 million cash. The deal is expected to be wrapped up next month.
Shares in Ausdrill were trading today at $1.657, up 4.7c or 3%.