Mining services company Ausdrill has received a letter of intent from miner Mineral Resources for a three-year contract at the Wodgina lithium operation in the Pilbara of Western Australia.
The proposed contract, with Mineral Resources subsidiary Process Minerals International (PMI), is expected to generate $180 million in revenue over the three-year term.
Ausdrill will provide drill and blast services at the Wodgina project, using 29 drill rigs and 150 on-site workers, the Perth-based contractor explained.
Ron Sayers, Ausdrill managing director, commented: “We are very pleased to have successfully negotiated this new contract and look forward to working closely with the PMI team in building a successful partnership.”
Final award of the agreement is subject to the two companies finalising contract terms and conditions, as well as execution of the contract.