Barminco Secures A$300M Contract at Dalgaranga Gold Project
Barminco, the underground mining subsidiary of Perenti, has clinched a significant four-year contract valued at around A$300 million with Ramelius Resources for the Dalgaranga Gold Project in Western Australia.
This contract comes with an option for a 12-month extension and marks another milestone for Barminco, reinforcing its position as a leading underground mining services provider in the region.
The Dalgaranga contract follows Barminco’s earlier success in delivering an underground exploration decline that enabled in-fill and extension drilling. That work has now paved the way for full-scale underground mining operations at the site.
Contract specifics
The agreement between Barminco and Ramelius sets out the following terms:
- Value: Approximately A$300 million
- Duration: 48 months, with a 12-month extension option
- Scope of work: Underground development, production and associated services
- Capital requirements: A$16 million in growth capital scheduled for FY26, already accounted for in Perenti’s financial guidance
Leadership perspectives
Perenti’s leadership emphasised the importance of the deal not only for Barminco but also for shareholders and the broader mining sector.
Mark Norwell, Managing Director & CEO of Perenti, highlighted the achievement: “Securing a four-year contract for underground mining at the Dalgaranga Gold Project is another strong result for Barminco. Several recent regional contract wins have built additional scale for the Barminco Australia business, which ultimately delivers benefits for both our clients and shareholders. The Dalgaranga project will further support our Australian earnings and sustainable cash generation. We look forward to delivering enduring value and certainty for Ramelius and appreciate the opportunity.”
Gabrielle Iwanow, President of Contract Mining at Perenti, echoed this sentiment: “I’m proud of the Barminco team for the successful contract award for development and production at Dalgaranga for Ramelius. The longer-term contract is validation of the high-quality work that has been completed at Dalgaranga to date. I look forward to the Barminco team continuing to deliver safe and reliable production for Ramelius for years ahead.”
Project background
Located approximately 475 kilometres northeast of Perth and 80 kilometres northwest of Mount Magnet, the Dalgaranga Gold Project has seen renewed focus since Ramelius acquired Spartan Resources. The transition of ownership has spurred investment into expanding underground operations, leveraging Barminco’s proven expertise in high-grade gold mining.
Ramelius has been driving exploration activity across the project’s deposits, particularly the Never Never and Pepper zones. These exploration efforts have revealed encouraging results, strengthening confidence in the long-term viability of the site.
Exploration results fuel optimism
Recent infill drilling at Dalgaranga has uncovered robust assay results. Key highlights include:
- 25.4 metres at 11.4 grams per tonne (g/t) of gold from 22.5 metres
- 43.5 metres at 11.7 g/t from 207 metres
- 29.7 metres at 2.94 g/t from 225 metres
These figures suggest a strong mineralisation profile across both Never Never and Pepper deposits, reinforcing Dalgaranga’s potential as a high-yield underground mine. The continuity of these high-grade zones underpins Ramelius’s strategy to accelerate underground production.
Strategic importance for Perenti
This contract adds weight to Barminco’s growing portfolio of projects in Western Australia. With multiple regional contract wins secured in recent months, Barminco is positioned as a major contributor to Perenti’s overall earnings.
From a financial standpoint, the Dalgaranga contract strengthens Perenti’s visibility on cash flow and earnings. The A$16 million growth capital investment required in FY26 has already been incorporated into financial forecasts, minimising risk for investors. For shareholders, this translates into enhanced stability and confidence in future returns.
The broader mining outlook
Australia’s gold mining sector continues to show resilience, with projects like Dalgaranga benefiting from strong exploration results and supportive market conditions. The demand for high-grade gold deposits is increasing as investors seek safe-haven assets and miners aim to replenish declining reserves.
Western Australia remains at the forefront of global gold production, contributing significantly to Australia’s reputation as the world’s second-largest gold producer. Strategic contracts like Dalgaranga highlight how service providers such as Barminco play a pivotal role in sustaining and expanding production capacity across the state.
Digging down
Barminco’s four-year partnership with Ramelius underscores the value of long-term collaboration in the mining sector. By combining technical expertise with operational excellence, the project is set to deliver consistent output while maintaining rigorous safety standards.
As exploration drilling continues and underground development progresses, Dalgaranga is poised to emerge as a cornerstone asset for Ramelius Resources. For Barminco and Perenti, this contract reinforces their role as trusted partners in unlocking Australia’s mineral wealth.
