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Barminco loses gold mining contract

Underground miner Barminco has lost one of its biggest contracts after being unable to agree on terms with gold miner Northern Star Resources.

Barminco said the companies had agreed for Northern Star to take back provision of mining services at the Kundana gold project near Kalgoorlie.

The $275 million three-year contract had two years to run. Barminco said the parties were unable to agree on new rates following a change to the scope of work being performed at Kundana.

The transition to the East Kundana Joint Venture takes effect June 30. “Barminco and Northern Star will work closely together over the coming weeks to ensure this process is as smooth as possible,” the contractor said.

The transition will be effective on June 30. “The majority of employees will be offered employment by EKJV or redeployed to other Barminco sites.”

Northern Star owns 51 per cent of the joint venture and Rand Mining and Tribune Resources 49 per cent.