INTERNATIONAL COAL NEWS

Hughes wins $20M Sonoma drilling contract

LEIGHTON Contractors' mining division has extended Hughes Drilling's contract at the Sonoma coal ...

Lou Caruana

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Hughes has been providing blast-hole drilling services at Sonoma since the mine began operations in 2008.

The contract will retain the five blast-hole rigs operating at the mine.

The Sonoma mine previously utilised six rigs.

Late in the 2012 financial year, one rig was transferred to a new pit owned by another Hughes client.

“Hughes blast-hole rig fleet expansion remains on track,” the company said.

“Hughes confirms that it remains on track for the addition of 11-13 blast-hole rigs during FY13.”

The blast-hole rig fleet as at June 30, 2013 is expected to be 38-40 rigs, a 40-48% step up on the 27 rigs held at June 30, 2012.

For the first half of FY13 the delivered fleet expansion was expected to equal the seven rig expansion for all of FY12, the company said.

Hughes only acquires new rigs against secured and generally long-term contracts in long-life mines.

“Growth is being driven by displacement of competitors, net expansion of the requirements of existing clients and opportunities in new pits,” Hughes said.

“The growth profile for Hughes’ blast-hole services particularly reflects the limited availability of well-maintained equipment by highly productive service providers.”

Achieving the full year number of additions to the company’s blast-hole rig fleet is particularly dependent on competitor displacement opportunities, the additional requirements of existing clients and the extent of any capacity constraints of the rig supplier, Reichdrill.

Hughes purchases all blast-hole rigs from Reichdrill.

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