Barminco has won a $190 million extension to its underground mining contract at Western Areas’ Spotted Quoll and Flying Fox nickel mines.
The extension is for an initial two year term, with an option to add two more one year terms.
The extension itself follows on from the original granting of a one year diamond drilling contract at the Flying Fox mine only last month.
Barminco has been operating as an underground mining contractor at the site for close to a decade now, having started working at Flying Fox in 2005, and Spotted Quoll in 2011.
“The contract extension was awarded following successful negotiations between the parties and was based on a proven delivery of safety, productivity and price,” Barminco stated.
“We have developed a close relationship with Western Areas and have gained an intimate knowledge of their mines over the last decade, so it is very pleasing to be able to build on that with another contract extension,” Barminco CEO Peter Stokes said.
“While price is obviously a very important factor, our customers do not award these contract extensions unless we are performing up to standard, both in terms of safety and productivity.
“The contract extension is also a great reflection of our employees’ ability to perform tasks both safely and efficiently at on site, and they are looking forward to continuing to make the operations a success.”
Around 210 workers are employed at the two nickel mines.