Perenti has won a A$630-million, 60-month mining contract from gold miner Newmont at its Subika underground gold mine, in Ghana.

Perenti said on Monday the UMA joint venture (JV), between the company’s subsidiary African Underground Mining Services (AUMS) and Ghanaian civil and mining contractor Rocksure International, would provide all underground development and production activities, diamond drilling and associated support services for the mine.

Additionally, Newmont would acquire the current fleet of underground equipment for the project, and would also be responsible for the acquisition of additional fleet as required, reducing the capital intensity of the project. Perenti was expecting to finalize the sale of these assets before the end of the year.

“With this new contract, Perenti not only expands its tenure in Ghana but furthers its relationship with Newmont, the world’s leading gold company with a world-class portfolio of assets in favourable mining jurisdictions. We are very pleased that we will continue to deliver value and certainly to Newmont and our other stakeholders in Ghana and beyond,” said Perenti MD and CEO Mark Norwell.

AUMS started development and production activities at Subika in mid-2017, and the new contract is effective from January 1, 2023.