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LONDON (Alliance News) - Capital Drilling Limited Friday said that it has won new contracts in Tanzania, Papua New Guinea and the Solomon Islands.
The emerging and developing markets drilling company said it has signed a five-year contract with AngloGold Ashanti to provide all the drilling services to the Geita Gold mine in Tanzania, which includes development, grade control and blast-hole drilling. It said that initial rig requirements in 2014 will total nine rigs, of which four will be sourced internally and, in the case of the blast hole rigs, through new purchases.
Capital Drilling also said that it had been awarded a three-year contract expansion by St Barbara at the Gold Ridge project in the Solomon Islands. The agreement involves the deployment of a further two rigs to the region, which would bring the total number of rigs deployed by Capital Drilling for St Barbara in the Asia Pacific region, to four. It said that mobilisation is underway, with increased activity expected in late 2013.
The drilling company also said that it has been awarded a new contract for the Simberi Mine in Papua New Guinea.
"The Geita contract is particularly significant for the group as it adds to our operations in Tanzania and now positions Capital Drilling as the largest drilling contractor in the country," Chief Executive Officer Jamie Boyton said in a statement. "These key contracts provide significant revenues over the next few years and, with our ability to provide all of the key drilling disciplines, Capital Drilling remains well positioned and is set for any recovery in the mining sector."
The company will provide a further update in its interim management statement scheduled for late October 2013.
Capital Drilling shares were trading 5.7% higher Friday morning, at 21.00 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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