Swick secures $210m in drilling contracts

Image: Newmont Mining.

Swick Mining Services has considerably boosted its order book due to several new tender outcomes and contracts both in Australia and internationally.

This includes new or revised agreements with BHP, Kirkland Lake Gold, Newmont Mining and Northern Star Resources.

The Western Australia-based company has extended its diamond drill rig trials at BHP’s Olympic Dam operation in South Australia to April 2020. Swick has two rigs at the site presently and is set to increase these to five by this April.

Swick also received a three-year extension at Kirkland Lake Gold’s Cosmo gold mine in the Northern Territory starting from March 1 2019 but was unable to secure an extension at the Fosterville gold mine in Victoria.

The drilling contractor operates 11 rigs across both sites and is currently embarking on a de-mobilisation process at Fosterville, which it expects to complete in May 2019.

Swick will also de-mobilise four of seven rigs at Newmont’s Tanami gold site in the Northern Territory throughout April, with three rigs to remain as part of a new agreement.

Outside of Australia, Swick was awarded a drilling contract to mobilise eight drill rigs at the Pogo gold mine in Alaska, United States from mid-May.

Swick managing director Kent Swick said the redeployments were in line with the company’s strategy to deliver on its target margins and that the company was well positioned to deploy rigs at new projects.

“We are delighted that this new work will significantly grow our order book, providing Swick with a strong platform to deliver earnings growth in the 2020 financial year,” he said.

“In particular we are pleased to see the growing success of our international strategy, especially in the USA where the award of this contract will see Swick take a leading position in market share.”

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