Mining services company Capital has been awarded two new long-term three-year contracts at AngloGold Ashanti’s Geita gold mine, in Tanzania.
The new contracts are scheduled to start on April 1, and are expected to generate revenues of $65-million over the contract term.
The contracts include the continuation of surface delineation and openpit grade control drilling services, in addition to underground grade control and delineation drilling, with an expanded scope for underground drilling activities.
The award is subject to final contract execution and relevant government approvals.
The underground contract will use nine rigs, including five from the existing fleet, together with an additional four new rigs, which have been secured and are currently in transit to the site.
The surface delineation contract will use the existing fleet of five rigs.
These contracts will bring Capital’s relationship with AngloGold Ashanti at the Geita site to 19 consecutive years.
This follows the company’s recent announcement of its contracts with the Sukari gold mine, in Egypt, for the provision of waste mining and expanded drilling services, which will extend its relationship with Centamin to 20 consecutive years.
“These long-term partnerships are a testament to Capital's project execution capabilities, the value we deliver and the strong relationships we build with our clients,” says executive chairperson Jamie Boyton.
Capital has been providing drilling services at the Geita mine since 2006.