The contract is for three years starting in March 2012 and will provide surface to seam gas drainage services at Xstrata’s Oaky North, Oaky No.1 and Newlands coal mines in Queensland.

Lucas chief executive Allan Campbell said: “We are very pleased to have been selected by Xstrata to provide these gas drainage services.

“The order is another clear testament of the quality of our services and the high regard in which we are held by the market.”

The contract increases the drilling division’s order backlog to in excess of $500 million – a record level – and underpins several years of operations for the division, Campbell said.

The gas drainage market is becoming increasingly competitive with contractors WDS, Mastermyne, and VLI being the major players.

Last week, WDS announced it had taken delivery of two new surface–in–seam drilling rigs which will be used to support its Titeline coal mine gas drainage operations.

Since the acquisition of Titeline in 2009, the business has expanded its operations into coal mine gas drainage using the expertise of both WDS mining and its energy and infrastructure divisions, managing director Terry Chapman said.