26/07/2011 - 10:12

Ausdrill going underground

26/07/2011 - 10:12

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Ausdrill going underground
EXPANDING: Ausdrill managing director Ron Sayers says there are further opportunities for the firm in underground mining.

Drilling services firm Ausdrill says it is looking at establishing a new division providing underground mining services, after failing to reach an agreement on the acquisition of rival contractor Barminco.

The company has also announced a new $75 million deal with Fortescue Metals Group.

Ausdrill said its expansion plans included either establishing an underground division through a start-up or acquiring an existing contractor.

The company said it had discussed the possibility of acquiring underground contractor Barminco, but the two parties were unable to agree on terms.

Ausdrill managing director Ron Sayers said the company was focused on expanding its operations to create shareholder value.

“Due to the increasing level of activity in the region, we believe there are significant opportunities to provide further services to the industry to new and existing customers,” Mr Sayers said

Meanwhile, Ausdrill today announced a $75 million, three-year mining services deal with Fortescue Metals Group at the Solomon Hub iron ore development in the Pilbara.

The drilling services firm will provide reverse circulation and resource development drilling at Solomon, using six drill rigs to define the initial three years of ore production.

Work under the deal will commence in October.

Ausdrill’s stocks had jumped more than 6 per cent at 10:10AM (WST), to trade at $3.36.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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