Ausdrill Ltd
(ASX:ASL), through its subsidiary African Mining Services, has been awarded a contract to provide mining services at the Yanfolila gold mine in Mali.
This contract was awarded by Hummingbird Resources, a UK listed gold explorer and developer. The deal is for 3 years, with an option to extend by an additional year.
Ausdrill expects this deal to generate around $147 million worth of revenue over 3 years, with mining to commence in the second half of 2017.
The company also says the project will employ 450 personnel (the majority of whom will be local), and require $50 million in capital expenditure for the acquisition of new equipment.
Ausdrill reported a net profit of $58.2 million at 30 June 2016.
