Ausdrill JV wins $90m African contract

Ausdrill Ltd joint venture vehicle, African Underground Mining Services, has won a four-year $90 million production mining contract with the West African Red Back Mining.

The US$72 million (A$90 million) contract is the latest big win for AUMS, which is a 50/50 joint venture between Ausdrill subsidiary African Mining Services (Ghana) Pty Ltd and Barminco Ltd.

The production contract is the second awarded to AUMS by Red Back Mining in the past six months, following a three-year, US$62 million development contract for Akwaaba underground.

The production contract brings the total value of work won by AUMS with Red Back Mining to US$132 million.

Ausdrill Chairman Terry O'Connor says the contract continues the company's growth in Africa through AUMS and African Mining Services.

"Ausdrill and its subsidiaries have secured some significant contracts and extended our presence in Africa, and we believe we are well positioned to seize further opportunities in this market," Mr O'Connor said.

African Mining Services (Ghana) Pty Ltd also has a five-year open pit contract with Red Back Mining at the Chirano gold project.