Savannah contract for Barminco

PANORAMIC Resources has signed a letter of intent with Barminco, awarding it preferred underground contractor status.

A subsidiary of Perenti Global Ltd, Barminco is one of the world’s largest hard rock underground mining service companies.

Confidence in the long -term potential of the project was supported by a $32.7m raising in rights issues mid-January.

Barminco will provide a newer mining fleet and is expected to employ the majority of the existing Panoramic underground mining and maintenance workforce.

Its proven expertise and established operating system are expected to improve operational efficiencies and drive production volumes to reach targeted levels.

Barminco chief executive officer Paul Muller said the miner looked forward to working closely with Panoramic Resources in driving the development of the Savannah North orebody safely and efficiently as it ramped up to full production.

Panoramic has had a full year to date after fighting off a hostile takeover from IGO, hitting the new ore body at Savannah North and employing a new company secretary after the retirement of veteran Trevor Eaton.

Savannah shipped its first shipment of concentrate in February 2019, after reopening in September the previous year.

Barminco hopes to deliver mobilisation and shift to contract mining at Savannah by the end of the March 2020 quarter.

Barminco has been signed as underground operator for Panoramic Resources’ nickel/cobalt project. Image: Jeremy Smith.