Barminco secures three-year contract extension from Western Areas


Barminco has won a $236m deal to provide contract services for Western Areas' Forrestania Nickel Operations (FNO) in Western Australia for an additional three years on the existing contract.  

Under the contract extension, Barminco will offer mining services and diamond drilling at FNO’s Flying Fox and Spotted Quoll underground mines. 

Following the agreement, Barminco will have served Flying Fox for more than 15 years, having started operations at the mine in March 2005. 

The mining services company has offered contract services at Spotted Quoll for more than five years, having started in May 2011 when the underground mine first opened. 

The company said that safety played an important role in securing the contract as there has been a 76% reduction in total recordable injury frequency rate over the last three year.

"FNO comprises a regional tenement package, which is expected to produce an average of 25,000t of nickel in concentrate per annum."

Following negotiations, the two parties have carried out several productivity improvements, which are expected to continue into the new contract.

FNO comprises a regional tenement package that is understood to be prospective for further discoveries, which is expected to produce an average of 25,000t of nickel in concentrate per annum.

Barminco CEO Peter Stokes said: "We look forward to continuing to support Western Areas in delivering consistent and reliable production metrics, and maintaining an outstanding safety record at both sites."

Extending from 250m to 1.2km below the surface, the Flying Fox orebody includes discrete independent orebodies with possible extensions at depth. 

Meanwhile, the Spotted Quoll orebody is open at depth with the mine planned to just over 1km below the surface and has an estimated mine-life of more than ten years.