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Hard-rock underground mining specialist Barminco has secured a $140 million contract extension to carry out production and development work at MMG’s Dugald River mine.

Barminco has been operating at the Dugald River site, 65km north-west of Cloncurry, since 2012.

In addition to a number of amended conditions, its contract variation extends the term of the contract by 18 months to 31 December 2022 with two one-year options to extend further.

“We are excited to continue our relationship with MMG, which began in 2001 at the Rosebery mine in Tasmania,” Barminco chief executive officer Paul Muller said.

“Dugald River has been a significant project for Barminco since commencement during 2012, and this extension will take our valued relationship with MMG to over 20 years.”

Barminco is a subsidiary of Perenti. Managing director and chief executive officer Mark Norwell, said the parent company had a robust tender pipeline of $8.8 billion.

Perenti’s Underground Industry Sector Group had secured more the $540 million in contract extensions this financial year, he said.

“We look forward to continuing to deliver enduring value and certainty for MMG and the people of Cloncurry and the Mount Isa region,” Mr Norwell said.