Setbacks for Ausdrill

AUSDRILL says a proposed contract with Mineral Resources will now be half the value of what it previously flagged, while work on another major contract has been reduced.

Setbacks for Ausdrill Setbacks for Ausdrill Setbacks for Ausdrill Setbacks for Ausdrill Setbacks for Ausdrill

In February, Ausdrill said it had received a letter of intent from MinRes subsidiary Process Minerals International (PMI) for a three-year, A$180 million drill and blast services contract at the Wodgina lithium mine in the Pilbara.

But the company said today that while contract negotiations continued, it now expected the value of the contract to be around $90 million.

No reason was given for the change in scope, but Ausdrill said discussions continued over that, as well as potential opportunities beyond Wodgina.

Meanwhile, the company said its scope of works at Kalgoorlie Consolidated Gold Mines' Super Pit was currently reduced by around 35% du...