Alliance Aviation Services Ltd (ASX:AQZ) has signed a contract extension with Newmont Mining Corp (NYSE:NEM) for a further period of three years.
Alliance Aviation is a provider of contract, charter and aviation services in Australasia, and it generates a significant proportion of income from the mining industry.
The company services the mining, energy, tourism and government sectors, employing in excess of 500 full time staff in Australia, New Zealand and Europe.
Alliance Aviation generates substantial revenue from providing fly in fly out services to assist mining companies with operations in more remote areas.
Contract extends agreement with Newmont until 2021
Alliance Aviation has been providing services to Newmont since 2012.
This contract extension will see the company providing Newmont with air charter services from its bases in Perth and Brisbane, as well as a newly established base in Darwin.
Newmont’s Granites Gold Mine which produces circa 450,000 ounces of gold per year is located 500 kilometres from Alice Springs.
Expansion of granites gold mine could provide further opportunities
The company has recently expanded its production capacity, and its mine life has been increased by three years to 2028, a factor that could augur well for Alliance Aviation.
Alliance Aviation conducts flights between Darwin and the Granites itself, rather than through a subcontractor, increasing its flying for Newmont by approximately 25%.
In mid-January, the company extended its air charter services contract with Glencore PLC (LON:GLEN) until 2021.
Alliance Aviation provides services for its Clermont mine from Brisbane, the Sunshine Coast and Emerald.