IGO has awarded Barminco, an underground mining company owned by Perenti, a contract extension to continue mining at the Nova underground nickel mine in Western Australia.
The contract is valued at $157 million and involves Barminco executing underground mine development, production and mining support services.
The contract extension is for 29 months and commenced on July 1 2024, with the agreement not requiring new growth capital.
Barminco has been working at Nova since it started underground development in 2015, when it was a greenfield site. The initial 2015 contract between Barminco and IGO was for a 36-month period.
It was then extended in 2018 for another 48 months, with a 24-month extension option. Now that this option has been exercised, Barminco will operate at Nova until 2027.
“We are immensely proud that Barminco has been present since the beginning of the Nova operation,” Perenti managing director and chief executive officer Mark Norwell said.
“This contract extension is a testament to the strength of our relationship with IGO and underscores our commitment to collaborating with our clients to generate value together.”
The Nova operation is located in the Fraser Range of WA. During the 2023–24 financial year, Nova produced 20,806 tonnes of nickel, 9922 tonnes of copper, and 735 tonnes of cobalt.
Perenti president of contract mining Gabrielle Iwanow said Barminco is excited to continue aiding the delivery of Nova, an operation full of world-class critical minerals.
“The ongoing safe and reliable mine production showcases how a collaborative approach and willingness to explore innovative solutions can deliver positive outcomes, even amidst significant market challenges,” Iwanow said.
Barminco is currently supporting IGO as it transitions its Cosmos nickel mine into care and maintenance in light of faltering nickel prices primarily caused by a supply surplus and an increase in nickel supplies from countries like Indonesia and China.
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