Ausdrill wins $235m Africa contract

Ausdrill subsidiary African Mining Services has been selected as preferred open-pit mining contractor for West African Resources' Sanbrado gold project in Burkina Faso.

The mining services contractor said the scope of work included a full suite of open-pit mining services, including site preparation, drill and blast, load and haul, and maintenance works.

These works will occur over a five-year term, and Ausdrill expects it to generate approximately $235 million in revenue.

The company anticipates it will employ approximately 190 personnel at the project, with the workforce to be predominantly local.

Work is expected to commence early next year.

The Sanbrado gold project located 90 kilometres from Burkina Faso’s capital, Ouagadougou, and is forecast to have average annual production of 217,000 ounces.

Ausdrill managing director Mark Norwell said a key focus for the new Ausdrill group had been to enhance its surface operations in Africa and target substantial growth opportunities across a range of commodities in select African countries. 

“Being selected as preferred contractor at the Sanbrado gold project is a significant achievement and represents the excellent progress we are making in building on the suite of quality projects on which AMS operates in the region,” he said.

West African Resources managing director Richard Hyde said the company was looking forward to partnering with Ausdrill to bring its fully funded project into production in mid-2020.