Mitchell secures contract extension at Olympic Dam

BHP has extended Mitchell Services’ underground drilling contract at the Olympic Dam mine in South Australia.

Mitchell announced that its contract at the multi-commodity mine has been extended by at least 12 months to April 2019. Its scope of work will also be increased following a successful mobilisation and strong drilling performance.

The contract variation will see Mitchell provide up to seven underground rigs and play a role in BHP’s plans to expand the high-grade southern area of the mine as part of a growth strategy at the operation.

Mitchell chief executive officer Andrew Elf said he was proud the company was offered the extension and scope increase.

“It demonstrates our ability to execute on a safe, efficient mobilisation process and our ability to match the high standards of Tier 1 mining clients such as BHP through safe and productive drilling,” Elf said.

Mitchell initially secured a one-year contract to provide mining services at Olympic Dam in April this year.

Under the original contract, which included two one-year extension options, the company was engaged to provide diamond drilling services and obtain new underground rigs for the site.