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Mining slowdown felt by Ausdrill

Ausdrill have reported a 12 per cent profit fall amid a slowdown in the mining sector.

The mining services group posted a net profit of $48.1 million in the six months to December, down 12 per cent on the same period last year, SMH reported.

However Ausdrill also reported revenue of $580 million for the first-half of the financial year, a rise of 13.4 per cent from the previous reporting period.

Managing director Ron Sayers said the company’s acquisitions had created a strong service portfolio that helped it remain in profit despite the slowdown.

"Out diversity and in particular the continued strong growth from Africa places Ausdrill in good stead as the mining sector resumes activity in 2013," Sayers said.

Last year Ausdrill won a US $540 million contract to provide mining services at Resolute Mining's Syama gold mine.

The work will be carried out through Ausdrill's subsidiary African Mining Services at Resolute's flagship operation, and will encompass all aspects of mining at the project.

The contract will run for around five years, and begun in September.

In November, the company also completed the acquisition of the Best Tractor Parts Group.

The company initially announced its planned takeover in July, after rumours of the move were broken in May, forcing Ausdrill to admit it was considering acquiring Best Tractor.

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