Anglo American: Mitchell Services Wins $25 Million Drilling Contract
Anglo American has awarded Mitchell Services Limited with a three-year, $25 million contract for drilling services at the company’s Queensland coal mines.
The contract will see Mitchell provide six rigs across multiple sites on Anglo American’s QLD coal operation. The contract has an option for additional services based on performance during the initial work.
“After the Tom Browne Drilling Services acquisition [in August 2014] and the subsequent capital raising this contract win is another positive step forward for us,” said Andrew Elf, CEO of Mitchell Services. He added the company will continue to focus on its growth as well as opportunities to extend its relationships with existing clients.
Based in QLD, Mitchell Services provides global drilling services for exploration, mining and energy industries. The ASX-listed company specializes in coal exploration drilling, mineral exploration drilling, mine services and large diameter drilling, coal seam gas and shale gas drilling, coal mine methane drainage, directional drilling, and wireline services.
In announcing the contract win, Mitchell Services Limited Executive Chairman Nathan Mitchell said:
“The award of the contract is further evidence that Mitchell Services is continuing to strengthen its relationships among Tier one resources companies.
We have been very active in marketing and business development and our pipeline of opportunities is continuing to grow. We remain optimistic about the Company’s prospects of winning more contracts in the future based on the strong pipeline.
While this growth rate is encouraging, our long-term strategy is to continue to grow in a measured and sustainable way so that we can continue to strengthen our relationships with all of our valued clients.”
LSE-listed Anglo American is one of the largest coal producers in the world. Earlier this year, the miner announced its intention sell its stake in both the Dawson and Foxleigh coal mines in Queensland.