Barminco has secured a A$700m ($503.43m) contract extension from AngloGold Ashanti Australia to continue the provision of underground mining services at Sunrise Dam gold mine, located 55km south of Laverton in Western Australia (WA).

Following the extension, Barminco will continue to provide services at the project for an additional five years.

“We are very pleased to extend our relationship and continue work to achieve our shared vision with AngloGold.”

Barminco has been operating at Sunrise Dam since the commencement of underground operations in 2003.

AngloGold is planning to ramp up production from the underground operations beyond the current rate of around three million tonnes per year.

Barminco CEO Paul Muller said: “This contract extension speaks volumes about our commitment to AngloGold, the relationship we have built with them and the results that have been delivered at Sunrise Dam over the past 15 years.

“We are very pleased to extend our relationship and continue work to achieve our shared vision with AngloGold to further increase annual production using our latest equipment and cutting-edge technologies.”

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By GlobalData

Underground mining is now the primary source of ore for the Sunrise Dam operation after the completion of mining the Crown Pillar in 2014.

As at 31 December last year, the project had mineral resources of 5.98Moz and ore reserves of 1.19Moz.

AngloGold Ashanti Australia senior vice-president Michael Erickson said: “A culture of operational excellence drives the mining strategy at Sunrise Dam, where we are targeting world-leading productivity to deliver a long-life operation with consistent cash returns.

“This contract extension demonstrates the commitment and strong working relationship that AngloGold Ashanti and Barminco have built over many years of mining challenges while continuing to significantly improve safety and productivity.”

This year, AngloGold will focus on embedding a more selective mining approach at Sunrise Dam to target higher grade sections in the underground sections.