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Work will be undertaken at the Yarrabee, Cameby Downs and Duralie coal mines as Yancoal plans to grow production over the next five years.
Hughes Drilling plans to deploy three blast hole drill rigs made by its US-based manufacturing division Reichdrill.The models used will be the C-700 and C-750. Two rigs are part of Hughes' existing fleet and one is on its way from the US.
Hughes Drilling managing director Bob Hughes said this new contract would boost the company's fleet utilisation rate to about 90%.
The contract will start July 1 and includes an option for one year extension.
The contract win follows a previous three-year contract award with two one-year extensions from Glencore in January for overburden drilling work at the Collinsville coal mine in Queensland, as well as a short-term agreement with BHP Billiton for the provision of similar services at its Mt Arthur coal mine in NSW.
