Vysarn wins $13m FMG contract

West Perth-based Vysarn announced it has entered a two-year drilling and construction agreement with Fortescue Metals Group for works across its mine sites in the Pilbara.

Under the contract, Vysarn will provide drilling and installation of production, injection and monitoring bores for FMG’s Cloudbreak, Christmas Creek, Solomon and Eliwana iron ore mines.

Vysarn has estimated total revenue, based on average rates and average metres drilled per month, to be approximately $13.3 million over the two-year period.

FMG has the option to extend the contract by one year.

Vysarn completed the mobilisation of the first dual rotary drill rig and associated auxiliary plant at FMG’s Cloudbreak mine in October under the initial purchase order, which was valued at $800,000.

It anticipates the mobilisation of the second drill rig in January.

In a separate announcement on November 22, Resource Development Group said it had secured two contracts with FMG and one contract with Blackham Resources, totalling an aggregate value of $8 million.