Perenti Lands A$1.02 Billion Obuasi Contract with AngloGold Ashanti
Perenti’s African Underground Mining Services has locked in a five-year, A$1 billion contract to provide underground mining services at Ghana’s Obuasi Gold Mine, reinforcing its strategic partnership with AngloGold Ashanti.
- AUMS wins a five-year underground mining contract at Obuasi Gold Mine
- Contract valued at approximately A$1.02 billion over 60 months
- Services include underground development, production, and mining support
- No new growth capital required as AngloGold Ashanti funds major expenditures
- Contract strengthens Perenti’s long-standing relationship with AngloGold Ashanti
A Major Win in Ghana’s Mining Sector
Perenti Limited, a diversified mining services group listed on the ASX, has announced a significant contract win through its subsidiary African Underground Mining Services (AUMS). Via the Underground Mining Alliance joint venture, AUMS has secured a five-year underground mining services contract at the Obuasi Gold Mine in Ghana, operated by AngloGold Ashanti. Valued at around A$1.02 billion, this deal marks a substantial extension of Perenti’s footprint in one of Africa’s most prolific gold mining regions.
Contract Scope and Strategic Implications
The contract, commencing in February 2025 and running for 60 months, covers underground development, production, and related mining services. Notably, the agreement requires no new growth capital from Perenti, as AngloGold Ashanti will provide the major capital expenditure needed for the project. This arrangement reduces Perenti’s financial exposure while allowing it to leverage its operational expertise to deliver value.
Mark Norwell, Perenti’s Managing Director and CEO, highlighted the importance of this contract as a testament to the reliability and scale of Perenti’s underground mining capabilities. The company’s extensive experience and global reach position it well to meet the demands of a complex operation like Obuasi, which has been a key site for AUMS since 2019.
Strengthening Partnerships and Future Prospects
Gabrielle Iwanow, President of Contract Mining at Perenti, emphasized the strategic value of the relationship with AngloGold Ashanti, one of the world’s largest gold producers. The collaboration reflects a mutual commitment to operational excellence and long-term growth. For Perenti, this contract not only secures steady revenue but also reinforces its reputation as a trusted partner in the mining services sector.
Given the scale and duration of the contract, Perenti is well positioned to benefit from stable cash flows and operational continuity. The partnership with Rocksure International, a local Ghanaian contractor holding a 40% stake in the joint venture, also underscores Perenti’s commitment to local engagement and sustainable operations in the region.
Looking Ahead
While the contract provides a clear revenue runway, investors will be watching how Perenti manages operational risks and delivers on performance targets. The absence of new capital requirements is a positive from a balance sheet perspective, but it also means Perenti’s growth will be closely tied to operational efficiencies and contract execution.
Bottom Line?
This A$1 billion contract cements Perenti’s role in Ghana’s mining landscape, setting the stage for sustained growth and deeper collaboration with AngloGold Ashanti.
Questions in the middle?
- How will Perenti manage operational risks over the five-year contract term?
- What are the potential impacts on Perenti’s margins given AngloGold Ashanti’s capital expenditure role?
- Could this contract pave the way for further expansion in West Africa or other regions?
