12/06/2018 - 13:23

Ausdrill slumps on MinRes contract change

12/06/2018 - 13:23

Bookmark

Save articles for future reference.

Shares in Ausdrill slumped more than 20 per cent today after the mining services company said its $180 million contract at Mineral Resources’ Wodgina lithium project was set to halve in value.

Ausdrill is meant to be completing drill and blast services at Wodgina.

Shares in Ausdrill slumped more than 20 per cent today after the mining services company said its $180 million contract at Mineral Resources’ Wodgina lithium project was set to halve in value. 

In a statement to the ASX today, the company said it was still negotiating with MinRes’s subsidiary, Process Minerals International.

“Whilst we remain in discussions with PMI regarding the contract scope and possible opportunities beyond the Wodgina project, we now expect the value of the contract to be approximately half the previously announced $180 million over the initial three years,” Ausdrill said.

Shares in Ausdrill were off 20.17 per cent at $1.90 at 3pm AEDT.

In February, Ausdrill announced that it had received a letter of intent from MinRes for a new three-year contract to provide drill and blast services at Wodgina, using 29 drill rigs and 150 personnel.

The Ron Sayers-led company also said today that, due to the recent wall failure at the Super Pit, its current scope of works had reduced by 35 per cent while Kalgoorlie Consolidated Gold Mines reviewed the mine planning.

“At this stage, it is difficult to provide a definitive timeframe for the reduction and we continue to work closely with KCGM as they develop their future plans,” Ausdrill said.

Meanwhile, the company also said that mining operations had recommenced at the Yanfolila project in Mali after three people were killed during protests near the site last month.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options