Evolution awards Perenti unit A$520M mining contract for Cowal gold project

Evolution Mining Ltd. awarded Perenti Global Ltd. subsidiary Barminco Ltd. a nearly A$520 million contract for underground development and production works at the Cowal gold project in New South Wales, Australia.

Barminco is currently developing an exploration decline and conducting diamond drilling services at Cowal.

The new contract, which is one of Barminco's largest-ever underground mining projects, will expand the company's scope in Cowal and has an initial term of four years starting early July, Perenti said June 7.

"The project represents a significant improvement to our Australian underground earnings base and will generate strong project cash flows and returns in support of our capital allocation and investment," Perenti Managing Director and CEO Mark Norwell said in a statement.

Norwell said the project is in line with Perenti's target to ramp up earnings in "top-tier regions and with top-tier clients."

S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.