Perenti Global Ltd has announced its subsidiary, leading hard-rock underground miner Barminco, has finalised a contract with Panoramic Resources Ltd for development and production works at their Savannah Nickel Project in the Kimberley region of Western Australia.
The finalised contract represents a value of approximately AUS$280 million over a 4-year contract term.
Under the terms of the initial letter of intent, announced on the 6 April 2021, Barminco commenced mobilisation and early mining works ahead of the schedule. With finalisation of the contract, Barminco expects development and production works will ramp-up over the coming 6 months to achieve full run rate of revenue early in 3Q22.
Perenti’s Managing Director and CEO, Mark Norwell, said: “We look forward to working together with the team at Panoramic to develop what we all expect will be, Australia’s next long-life nickel producing mine.
“Despite the challenging labour market conditions in Western Australia, we have been successful in mobilising a labour force of approximately 110 highly skilled underground employees. We expect this to increase to 170 as the project ramps-up. Securing this labour force has enabled us to commence early works ahead of schedule. We look forward to providing a safe and efficient service while delivering value and certainty for Panoramic.”