Tag Archives: RC drilling

Master Drilling makes ‘horizontal integration’ move with Geoserve buy

Master Drilling has announced that it has fulfilled all the necessary conditions to acquire Geoserve Exploration Drilling, increasing the South Africa-based company’s ability to offer exploration drilling, reverse circulation drilling, geotechnical investigations and grade control drilling services.

In its 2019 financial year results, released today, it said the relevant competition commission had approved the transaction and Geoserve, a private company specialising in exploration and drilling services, would now be embedded into the company’s African segment as a wholly-owned subsidiary.

Danie Pretorius, CEO of Master Drilling, said: “The transaction will augment our expertise and global reach, as well as provide a platform for horizontal integration in the mining industry, which has been under pressure in the past few years, necessitating consolidation.”

Master Drilling paid MOGS Mining Services ZAR100 ($5.7) for the company, as well as assumed the bank overdraft facility and certain liabilities tied to Geoserve, it said. The company said a detailed purchase price allocation will be performed during 2020 and disclosed in its 2020 financial statements.

Master Drilling added: “Geoserve has a well-established footprint and pipeline that will reinforce Master Drilling’s capacity and income profile through increased exploration drilling, reverse circulation drilling, geotechnical investigations and grade control drilling services, which are all key to the broader mining sector.”

Perenti’s surface division awarded with A$155.5 million of new contracts

Perenti reports its Surface Mining Industry Sector Group (ISG) has been awarded A$155.5 million ($103 million) in new and extended contracts.

The new work, extensions, and expansion of scope is across 10 projects, with highlights including:

  • A three-year contract (with options to extend) for production drilling services with Boggabri Coal Operations (a part of Idemitsu Australia Resources Group) at its Boggabri coal mine in New South Wales, Australia;
  • A three-year contract extension with a major iron ore producer for reverse circulation (RC) and grade control drilling at its Western Australian operations;
  • A 12-month contract extension with Consolidated Minerals to support current mining operations and regional expansion projects (which has mining operations in Australia and Ghana);
  • Expansion of services for a major mining contractor in Queensland, which will double the contract value across the current three-year contract duration;
  • A 12-month extension to existing works at Gold Fields’ St Ives and Granny Smith gold projects, in Western Australia, which involves land and lake rigs for air core, RC and diamond drilling; and
  • An equipment hire agreement with E&P at Gold Fields’ Damang gold mine in Ghana.

Perenti Group Managing Director, Mark Norwell, said: “We have been targeting a strong pipeline of surface and underground work and I am pleased we continue to convert these opportunities into secured contracts across a range of different projects in both Australia and Africa.

“These latest awards add to $165 million in surface work we announced in December 2019 and the A$200 million contract we recently announced for our Underground ISG.”

DDH1 after WA iron ore contract growth with Ranger Drilling acquisition

DDH1 Holdings says it has acquired Ranger Drilling as it looks to grow the Australia iron ore RC drilling specialist’s business.

DDH1 Holdings now consists of three drilling businesses, namely DDH1 Drilling, Strike Drilling and Ranger Drilling.

Ranger was established in 2005 by Matt and Julie Izett and specialises in providing reverse Circulation (RC) drilling services to customers operating in the Western Australian iron ore market.

DDH1 Chief Executive Officer, Sy van Dyk, said: “Ranger will continue operating as a separate company, under the same management from the same premises. DDH1’s intention is to continue to grow the Ranger brand, while preserving their culture of leadership, productivity, innovation and safety. These are the qualities that attracted our investment in Ranger and we want to ensure it is protected and fostered going forward.”

Ranger’s Managing Director, Matt Izett, said: “DDH1 is a natural partner for Ranger to further our growth ambitions by providing additional capital to the business in a cost-effective and disciplined manner. I look forward to continue leading and growing the business Julie and I founded in 2005 and to deliver superior drilling solutions to our loyal customer base, whilst contributing at a senior level to the wider group’s operations”.

DDH1 Drilling, Strike Drilling and Ranger’s capabilities are highly complementary, DDH1 said, and the combination of the businesses provides the opportunity to offer clients the full suite of drilling services required across the resource life cycle, from discovering new deposits to extending existing mine lives. “The group’s drill rig fleet is modern, standardised and highly productive,” the company said.

DDH1 Managing Director, Murray Pollock, said: “DDH1 and Ranger have worked together on a shared contract basis, during which time we have observed Ranger’s premium customer service offering, the productivity gains delivered by their modern fleet and quality management team led by Matt Izett. Together, we are committed to being the drilling contractor and employer of choice in the Australian drilling industry.

“The group now has 84 Tier One drill rigs and employs over 700 staff to provide our customers with end-to-end drilling solutions. I am also pleased that as part of the transaction Matt and Julie Izett will become significant shareholders in DDH1 Holdings and we look forward to working with them.”

Qtec, Wallis and UWA granted cash to expand real-time drill and assay technology

The Australian Government Department of Industry, Innovation and Science recently announced that the joint venture (JV) between Qtec, Wallis Drilling and the University of Western Australia has been awarded a three‑year grant from the Cooperative Research Centres Program (CRC-P) up to the value of A$2.8 million ($2 million).

Qteq, as the award recipients with Wallis and UWA as the JV partners, were awarded the grant for development of a real-time communications and downhole power generation system to be used with Qteq’s existing fleet of Measurement While Drilling instruments.

Following the initial phase of the project, the JV will work on developing Logging While Drilling tools that include nuclear magnetic resonance and spectroscopy, Qtec said.

The completed project will deliver the ability to provide real-time assay and moisture content during the reverse circulation drilling process, according to the company.

Qtec Chief Technology Officer, Dr Tim Hopper, said: “The ability to acquire assay and moisture content whilst drilling will dramatically change the face of minerals drilling in Australia. The cost and time reduction to clients is significant, with miners no longer needing to wait months to get cutting samples analysed before they can make decisions.

“When combined with the Wallis Drilling 300RC Autonomous Rig, the industry takes a step closer to achieving the ability to remotely drill and assay holes, with staff being able to monitor and direct operations remotely,” he said. “The mine of the future takes another step forward.”

The Department of Industry, Innovation and Science’s CRC-P aims to improve the competitiveness, productivity and sustainability of Australian industries, especially where Australia has a competitive strength and is in line with government priorities, according to Qtec.

“While the programme wishes to foster high-quality research to solve industry-identified problems through industry‑led and outcome-focused collaborative research partnerships between industry entities and research organisations, it also aims to encourage and facilitate small and medium enterprise participation in collaborative research,” the company added.

With the award of the grant, the Western Australia-based JV will be looking to further promote the use of high-quality, high-technology equipment in the mining industry which it hopes will further encourage WA’s highly skilled workforce to consider a career in this usually “low-tech industry”, Qtec said.

Qteq’s recently appointed Chief Executive Officer, Ewan Meldrum, said: “The development of this new, advanced logging system will support Australia in becoming a world leader in the commercialisation of mining technology and services.”

Australia georesources sector set for further consolidation with QTEQ/WSG merger

Australia-based Qteq and Wireline Services Group (WSG) have agreed to join forces as they look to build a bigger domestic and overseas base in the georesources sector.

The merger, one of five corporate M&A transactions by Qteq in 2018, alone, signals an influx of innovative borehole measurement sensors and systems backed by two of the world’s leading geotechnical companies, Qtec said.

“The transaction will partner Qteq’s integrated technical services team with almost 80 field logging engineers across Australia and Canada,” the company added.

Qtec’s recent acquisition activity has seen it buy Surtech Systems and directional drilling and measurement-while-drilling (MWD) company WellServ, providing its clients with access to leading systems to collect accurate data on the composition and behaviour of subsurface rocks. WSG will complement this offering with its “safe, reliable and accurate” subsurface data acquisition and analysis services.

Qteq founder and CEO Simon Ashton said WSG shared the company’s vision for a “sustainable, environmentally responsible georesources sector”.

He added: “WSG’s 18 years of experience and dedicated team enhances Qteq’s national and international service capability beyond our current bases in every Australian state and core hubs overseas.”

The merger is supported by WSG founder and Managing Director Matthew Mayne, who will remain at Qteq as Managing Director of the Qteq Measurement Systems division, Qtec said. Mayne, who launched WSG more than 18 years ago, said the merger was a great opportunity for the company’s expertise to reach new markets.

“My first order of business will be driving the division’s regional and global growth, as Qteq continues to expand into South America, Africa and Canada,” Mayne said.

“The integration of the two companies will provide new opportunities across the georesources sector on a scale that has not been seen before. It will build and refine the skillset of our combined teams and provide our clients with direct access to Qteq’s innovative subsurface technologies.”

As a leading provider of subsurface geophysical and geotechnical measurement systems, and more than 30 logging units across Australia, Asia and Canada, WSG’s in-house data services team will work alongside Qteq’s client-focused team to increase the market uptake of Qteq’s technology portfolio, Qtec said.

Mayne said: “We aim to offer the most innovative, cutting edge subsurface data services and technology in the industry.

“Qteq’s research and development team, in Perth, is building a tech-based bridge from the oil and gas sector to the coal seam gas, mining and ground water industries, with elemental spectroscopy and MWD systems for RC drilling.”

Qtec said: “Qteq’s team is fully committed to providing an efficient and safe solution to the mine site automation trend that is changing the georesources industry. Measuring and monitoring the subsurface drives informed decision making, and protects the industry’s social licence to operate and meet community environmental expectations.”