Vysarn subsidiary Pentium Hydro has been awarded a goods and services contract by BHP Nickel West for drilling and monitoring of bore holes.
One of Pentium Hydro’s dual rotary drills had previously been contracted to an existing client under a dry hire agreement, but the machine will be redeployed for BHP.
Vysarn managing director James Clement said this was a key contract for Pentium Hydro.
“Pentium is delighted to be chosen as the successful tenderer to provide drilling services to BHP,” Clement said.
“They will be an important client for our company going forward and the award of the contract is another strong endorsement of the quality of Pentium’s service offering.”
The three-year contract term will begin on February 17 as Pentium provides the drilling and installation of production bores, monitoring bores and vibrating wire piezometers – a device used to measure liquid pressure.
Vysarn predicts the revenue from this contract to be approximately $2.8 million for the initial six-month scope of work, after which a schedule of rates will be determined.
Other recent contracts for Pentium Hydro have included a similar deal with Iluka Resources at its Cataby mine in Western Australia, as well as a $13 million bore field drilling contract with Australian Potash at its Lake Wells sulphate of potash project.
In June 2021, Clement said Pentium would need to secure further rigs to cater to a growing list of clients.
“This work now provides a contract pipeline exceeding the capacity of Pentium’s current fleet of 12 rigs in the first half of the 2022 financial year,” said Clement, following the Iluka deal.
“Management intend to lease or enter into hire purchase arrangements to execute the work in hand with additional drill rigs.”