Barminco secures Savannah contract from Panoramic Resources

30 January 2020 (Last Updated January 30th, 2020 12:21)

Australian development and exploration firm Panoramic Resources has chosen Barminco as its preferred underground contractor for the Savannah project in Western Australia.

Barminco secures Savannah contract from Panoramic Resources
Panoramic Resources has selected Barminco as the preferred contractor for the Savannah project in Western Australia. Credit: Kelly Michals.

Australian development and exploration firm Panoramic Resources has chosen Barminco as its preferred underground contractor for the Savannah project in Western Australia.

The project is a nickel-copper-cobalt (Ni-Cu-Co) mine located in Western Australia’s East Kimberley region, which is 110km north of Halls Creek.

The A$200m (approximately $135m) contract will see Barminco complete mine development, production and haulage in three years.

A part of the Perenti Group, Barminco expects to employ 170 people and use predominantly new equipment to complete the work.

Panoramic Resources managing director and CEO Victor Rajasooriar said: “The appointment of leading underground mining services provider, Barminco, as a preferred contractor at Savannah is the result of a rapid but comprehensive external engagement and tender process.”

In December 2018, mining operations recommenced at the project site after the mine was put on care and maintenance for two years.

The first shipment of concentrate from the Savannah project departed from Wyndham port last February.

Panoramic currently is in the process of developing the higher-grade Savannah North orebody towards a full production increase this year.

On signing a letter of intent with Barminco, Panoramic is now working with the former on finalising contract terms.

This is being done along with the development of a detailed mobilisation and implementation plan.

Execution of the plan is expected to provide mobilisation and transition to contract mining at Savannah by the end of March.

Perenti managing director Mark Norwell said: “This project demonstrates our ability to capture organic growth opportunities, with the Barminco business now well integrated into the Perenti Group whilst further embedding itself as a leader in underground mining.”

Earlier this month, Panoramic Resources signed a share purchase agreement in line with its wholly owned subsidiary Magma Metals selling all the shares of its Canada-based subsidiary Panoramic PGMs to Regency Gold.