Ausdrill has announced the award of mining contract extensions in both Australia and Africa. Ausdrill’s Australian drill and blast division has successfully negotiated a contract extension with thermal coal producer Ensham Resources for a further term of three years, worth approximately A$36 million. The contract is for the provision of drill services at the Ensham coal mine in the Bowen Basin, Queensland. Ausdrill will utilise four blast hole drills and one exploration drill, along with 35 personnel at this site, to drill in the order of 110,000 m per month. Subsidiary African Mining Services has, for the sixth consecutive year, successfully renegotiated the exploration drilling contract at the Ahafo gold mine in Ghana, owned and operated by Newmont. The contract will generate revenue of approximately $8 million over a period of 12 months.

The Ahafo deal extends African Mining Services’ relationship with Newmont at the mine where AUMS – African Underground Mining Services (a 50/50 joint venture between Ausdrill and Barminco) is also carrying out work at the Subika underground project. Ausdrill’s Managing Director, Ron Sayers, said: “It is pleasing to see the renewals of contracts where Ausdrill has had long term relationships with our clients. From day one we have built this business on the basis of developing strong, lasting relationships with our clients. We have a number of major contracts that are due for renewal in the next six months and we anticipate we will secure these.”