Perenti JV’s New $710M Underground Mining Contract in Burkina Faso
Perenti’s joint venture subsidiary, Underground Mining Services Burkina Faso (UMS), has been awarded a significant underground mining services contract at the Mana gold mine complex in Burkina Faso. The contract, valued at A$1.1 billion (approximately $710 million), will span five years. This marks a major expansion of Perenti’s operations in one of Africa’s most promising gold mining regions.
Located in the Houndé Greenstone Belt, the Mana complex includes the Siou and Wona underground mining sites. These are known for their high-grade gold deposits. Since 2018, African Underground Mining Services Burkina Faso has been providing underground mining services at Mana. Now, UMS will oversee an expansion of operations, solidifying the company’s position in the region.
Scope of the Underground Mining Contract
The new contract will see UMS manage underground development, production, and related services at the Mana complex. These operations are expected to play a crucial role in boosting the region’s gold production. With the contract set to begin in June 2024, UMS and its joint venture partner, Dynamic Mining Supply, will ramp up efforts. They aim to expand the mine’s capabilities.
The collaboration between Perenti and Endeavour Mining, through its subsidiary SEMAFO Burkina Faso, continues to grow. The expansion of the Mana gold mine complex is expected to bring significant economic benefits. These benefits will impact both local communities and the company. According to Perenti CEO Mark Norwell, the contract is in line with their financial guidance for FY25. It will positively impact the company’s results well into FY26.
Perenti’s Long-Term Commitment to Burkina Faso
This new contract highlights Perenti’s continued dedication to providing high-value services for its clients. Gabrielle Iwanow, President of Perenti Contract Mining, emphasized the importance of their enduring relationship with Endeavour Mining. She highlighted the commitment to long-term growth in Burkina Faso. By working with their local partner, Dynamic Mining Supply, Perenti aims to contribute to local procurement. They also aim to enhance capabilities and create employment opportunities in the region.
The Mana complex’s expansion is set to support local economies. It will further solidify Perenti’s standing in the African mining sector. As a leading player in the underground mining industry, Perenti continues to demonstrate its ability to deliver results. They also foster sustainable development and job creation in the regions where it operates.
SuperMetalPrice Commentary:
Perenti’s successful bid for the $710 million contract at the Mana Gold Mine is a significant achievement in the African mining sector. As global demand for gold continues to grow, the expansion of mining operations in Burkina Faso offers substantial growth prospects for the company. The emphasis on local partnerships and community development also demonstrates a forward-thinking approach. This aligns with industry trends focusing on sustainability and social responsibility. This contract not only secures Perenti’s future in the region but also sets a positive example. It does so for the industry in terms of local engagement and environmental responsibility.
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