Perenti subsidiary Barminco has confirmed a nine-month extension to its contract at IGO’s Flying Fox nickel operations in Western Australia.
The contract extension is effective from 1 January 2023 and has a value of approximately $30 million over the nine-month term.
Flying Fox is part of the company’s wholly owned Forrestania Operation complex, about 400 kilometres east of Perth; its sister operation there is the Spotted Quoll underground nickel mine. Barminco has been the primary underground mining contractor at Flying Fox since December 2004.
The newest extension will allow Barminco to continue its underground drilling at the mine, as well as development and mining activities.
CEO and MO Mark Norwell said the Australian labour market is tight.
“Inflation and cost escalation remains stubbornly persistent; however, strong and collaborative working relationships, like the relationship between IGO and Barminco, are key to the success of our business as well as the success of our clients. By working collaboratively with our clients, we continue to navigate and manage challenging macroeconomic conditions.”