Roy Hill has contracted Vysarn subsidiary Pentium to complete hydrogeological drilling at its Pilbara iron ore operations in Western Australia.
Under a three-year-and-five-month contract term starting January, Pentium will supply at least one drill rig to install production, injection and monitoring bores in support of mining and exploration activities.
The work is estimated to be worth approximately $12 million, which could grow if Roy Hill chooses to extend the contract by another year.
Pentium already has a dual rotary drill rig and associated ancillary equipment on one of Roy Hill’s sites for a previous general works contract signed late last year.
Using this equipment, Pentium has completed dual rotary and reverse circulation bore drilling services, minor civil earthworks and rotary air and conventional drilling for Roy Hill.
The iron ore miner has also deployed its eighth drill rig and mobilised its third rig for its company fleet through Pentium.
Pentium has provided mining and drilling services across Western Australia, including at Fortescue Metals Group’s Pilbara sites, Iluka Resources’ Cataby chloride ilmenite mine and AngloGold Ashanti and IGO’s Tropicana joint venture during the past year.
Roy Hill is a 55 million tonne per year iron ore, mining and port operation headed by mining magnate Gina Rinehart.