ASX-listed Perenti’s subsidiary mining business African Mining Services (AMS) has, through the AMAX joint venture (JV), reached agreement with AngloGold Ashanti on an orderly transition plan at the Iduapriem gold mine, in Ghana.

This transition will include the sale of AMS's mining fleet to AngloGold.

Iduapriem is an openpit mine in Ghana’s western region, where AMS has been providing mining services since 2018 through a JV with local partner, MaxMass.

Under the terms of the agreement, AMAX will continue to deliver mining services at Iduapriem until contract completion.

At the end of the contract, the majority of the AMS-owned equipment on site will be sold to AngloGold under a valuation methodology agreed in the contract, with proceeds to AMS estimated to be between A$30-million and A$40-million.

The contract details entail a value of about A$95-million, a term of about six months from July 17, surface mining and related supporting services and sale proceeds of about A$30-million to A$40-million at the contract conclusion.

“I’m pleased we have reached an agreement for the transition at Iduapriem, reflecting AMS’s long-standing record of strong operational delivery and enduring partnerships across Africa.

“Additionally, the agreed sale of equipment at the end of the contract provides certainty

and the opportunity to recycle capital within Perenti. The expected proceeds will be allocated towards several value-accretive opportunities currently under consideration,” says Perenti MD and CEO Vanessa Torres.

“Finalising the Iduapriem transition agreement with AngloGold Ashanti is another important step for the evolution of our contract mining portfolio.

“The AMS team is justifiably proud of the performance delivered at Iduapriem over the last eight years and remains committed to delivering the same professional services until the handover of operations.

“As growth options continue to emerge, contract mining is exceptionally well positioned for the future,” says Perenti contract mining president Gabrielle Iwanow.