Botswana Mining Review Comprehensive Coverage of the Progress and Achievements in the Mining Sector
Related Articles
Australian mining services giant Perenti’s underground arm, Barminco, is set to end its six-year stint at MMG’s Khoemacau Copper Mine in Botswana by June 30, 2025, the company announced this week. The move comes as Barminco sharpens its focus on more profitable ventures, including a lucrative A$120 million (approximately $74 million) contract secured in February for Nevada Gold Mines’ Goldrush Project in the United States.
Barminco has been a key player at the Khoemacau mine since its inception in 2019, providing crucial underground mining services. However, Perenti’s top brass revealed that the financial returns from the Botswana operation have consistently fallen short of internal expectations, prompting a strategic decision to withdraw.
“We have appreciated the opportunity to work on the Khoemacau Copper Mine and wish MMG well with their expansion plans,” stated Perenti Managing Director and CEO Mark Norwell. “As outlined during our half-year results, the financial performance at Khoemacau has not met our internal performance hurdles, and we must maintain our commercial discipline to enable consistent returns through economic cycles.”
As part of the existing agreement, Barminco will sell its entire fleet of equipment at the Khoemacau site to MMG. The final price tag for this machinery will be determined by a pre-agreed formula outlined in the contract.
Despite the impending departure, Barminco Contract Mining President Gabrielle Iwanow expressed gratitude for her team’s dedication in Botswana. “I am extremely grateful and appreciative for the efforts of the Barminco team who have delivered results at Khoemacau,” she said. She also highlighted the company’s contribution to skills development in Botswana, noting, “I trust that the high standard of training we initiated, including training some of the very first underground mine operators in country, will leave a legacy for the hundreds of Batswana citizens we have worked alongside for the past six years.”
Iwanow assured a smooth and safe handover of underground operations in the coming months, with Barminco pledging its continued support to MMG during the transition period.
The move signals a strategic realignment for Perenti, prioritizing projects like the Goldrush development in Nevada, which promises more robust financial returns. This A$120 million contract with Nevada Gold Mines underscores Barminco’s commitment to expanding its footprint in the North American market while ensuring profitability across its global operations.
While Barminco’s exit marks the end of an era for the Khoemacau mine, the company leaves behind a legacy of operational expertise and skills development in Botswana’s burgeoning mining sector. MMG will now be looking to ensure a seamless continuation of operations as they embark on their expansion plans without their long-standing partner.
