Mitchell Services has secured an underground in-seam (UIS) drilling services contract extension with Anglo American at two of its Queensland coal mines, Grosvenor and Moranbah North.
The contract continues Mitchell’s services at the site since it won the original $25 million contract with Anglo American, pushing their agreement out to December 2021 with the option for a further two-year extension.
Under the new contract, Mitchell Services will provide up to six UIS rigs and specialist underground coal drilling and gas drainage services at the Grosvenor and Moranbah North sites.
Mitchell Services expects a “significant long-term revenue and (earnings)” as a result of the extension and scope increase, but did not disclose the recent contract value.
It is not likely to have a material impact on Mitchell Services’ 2019 financial year revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) guidance numbers of $110–$120 million and $21–$23 million respectively.
Mitchell Services recently mobilised its BHP Olympic Dam and KCGM Mount Charlotte contracts as part of its ramp up at numerous sites post the third quarter break.
Chief executive Andrew Elf said Mitchell Services would continue looking for acquisition and growth opportunities in the near-term.