Perenti subsidiary Barminco lands $500m contract extension at Gold Fields’ Agnew mine

Perenti (ASX: PRN) subsidiary Barminco has landed a contract extension at global mining giant Gold Fields’ historical Agnew gold mine in Western Australia.

Barminco has held the contract to supply underground mining services at Agnew since 2010, employing more than 300 people at the site.

Worth approximately $500 million, the contract renewal for development and production has a duration of three years with a one-year extension option.

Long-standing relationship

“We are very pleased to be extending our relationship with Gold Fields at the Agnew gold mine,” Perenti managing director and chief executive officer Mark Norwell said.

“Gold Fields is one of our most long-standing and valued clients, with a history of more than 30 years working alongside the various Perenti businesses.”

“Our Australian operations are important for Barminco to deliver enduring value and certainty for our clients and shareholders [and] maintaining long-term contracts with high-calibre clients such as Gold Fields supports continued delivery of reliable earnings for the business.”

Historical operations

Originally discovered in 1897, ownership of Agnew transferred from WMC to Gold Fields in December 2001.

Since that time, the mine has represented a solid base for Gold Fields’ growth in the region.

“Barminco has successfully ramped up development and production at Agnew in recent years,” Perenti president of contract mining Gabrielle Iwanow said.

“We very much value the relationship with Gold Fields and we look forward to continuing to deliver safe and productive underground services through our highly capable team in Australia.”

Botswana mine contract

The Agnew news is a positive development after Perenti reported in April that Barminco would be finalising operations at the Khoemacau copper mine in Botswana at the end of the current contract on 30 June 2025.

“As outlined during our half-year results, the financial performance at Khoemacau has not met our internal performance hurdles and we must maintain our commercial discipline to enable consistent returns through economic cycles,” Mr Norwell said.

“Operationally, our team has done an outstanding job and I thank them for their persistence and dedication.”