AJ Lucas wins Xstrata coal contract

 AJ Lucas Group’s drilling division has won an Xstrata Coal gas drainage contract.

Worth approximately $240 million, the three year contract will start in March next year and will provide surface to seam gas drainage services at the miner’s Oaky North, Oaky One, and Newlands coal mines.

Oaky Creek won Coal Mine of the Year in the 2011 Australian Mining Prospect Awards.

Regarding the contract, AJ Lucas CEO Allan Campbell said the company was "very pleased to have been selected by Xstrata to provide these drainage services".

This latest contract brings the drilling division’s order log to more than $500 million, a level which AJ Lucas says is a record for the company.

In March this year, the company sold its underground in-seam services business to Industrea for $25.5 million.

The company decided to sell its underground operation as it has focused its services on surface drilling, with underground drilling accounting for only 5% of its overall drilling turnover.

The sale consisted of seven drilling rigs and eight survey systems along with associated inventory.

Forty five staff were employed in UIS, all of whom have been offered employment by Industrea.

Chairman of AJ Lucas, Allan Campbell, said “the underground business is being sold because it is considered more of a mining services activity and therefore outside the company’s core drilling services capability. Additionally, it will free up resources to focus on our surface drill and well management activities.”

Industrea managing director Robin Levison stated that the acquisition and integration of this drilling company will add to Industrea’s gas management division.


To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.