Capital Ltd (LON:CAPD), a leading mining services company focused on the African markets, has announced the awarding of two new long-term three year contracts at AngloGold Ashanti’s Geita Gold Mine in Tanzania, including the continuation of surface delineation and open pit 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 utilize 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 utilize the existing fleet of five rigs. Capital has been providing drilling services at the Geita Gold Mine since 2006.
The new three year contracts are scheduled to commence on April 1 2021 and are anticipated to generate revenues of $65 million over the contract term.
Commenting on the contract win, Jamie Boyton, Executive Chairman, said:
‘The awarding of the contracts at the Geita Gold Mine maintains our long-standing relationship with AngloGold Ashanti and is in line with our strategy of focusing on long-term minesite contracts with premier clients, underpinning the sustainability of our business. The contracts, which have been expanded from the previous contracts, reflect the Capital team’s excellent operational performance in safely delivering drilling services at the site since 2006.
Significantly, these contracts will bring our relationship with AngloGold Ashanti at the Geita site to 19 consecutive years. This follows our recently announced contracts with the Sukari Gold Mine in Egypt for provision of waste mining and expanded drilling services, which will extend our 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.’