Ausdrill celebrates largest-ever contract

Ausdrill has announced its largest-ever contract win, with its African mining services subsidiary securing a $US540 million deal at Resolute Mining’s Syama gold operation in west Africa.

The Perth-based drilling and mining services provider announced today that its subsidiary, African Mining Services Mali, would perform all contract mining services for Syama for five years, commencing in September.

Ausdrill managing director Ron Sayers said AMS had reached an agreement with the current contractor at Syama to purchase its equipment, and would upgrade the mining fleet as required.

“This is the single largest contract ever awarded to the Ausdrill group and clearly recognises our ability to tackle large-scale mining service projects in West Africa,” Mr Sayers said.

Resolute approved a $241 million expansion of the existing open pit at Syama last month, also incorporating a 1 million tonne per year processing facility.

The miner is targeting production of 270,000 ounces per year from Syama.

At 10:10AM, WST, Ausdrill stocks had dipped slightly, down 3 cents at $3.32.