SURFACE DRILLING
our customers, resulted in multiple contract wins
over the year, including Resolute Mining,
Hummingbird Resources and Sama Resources.
As a result of the increased focus on the region,
Group revenues attributable to the region
increased from 13% in 2017 to 24% in H2 2018.”
Capital had 91 rigs at end of year (2017: 93) with
continued active fleet management, maintaining
industry leading equipment standards, with the
purchase of two new blasthole rigs in H1 2018,
while disposing of four rigs during the year (sale
and decommissioning).
Activity in East and Southern Africa also
showed signs of improvement over 2018, with
contracts awarded to Capital Drilling in Botswana
(De Beers), Tanzania (Graphex, Strandline) and
Kenya (Acacia). Significantly, the Group was
awarded contract extensions with two of its
major long-term customers, receiving a five year
extension at the Sukari Gold Mine (Centamin)
and a twelve month extension at the Geita Gold
Mine (AngloGold Ashanti). “The core long term
production contracts continued to perform
strongly over Q4 2018, and we are pleased to
have secured extensions to facilitate continued
investment and improvement at these
contracts.” The Geita contract covers
underground grade control and underground
exploration drilling services; while at Sukari it
includes blast hole and grade control drilling
services. Capital commenced a 6,000 m diamond
drilling contract with Sama Resources in Côte
d’Ivoire and the above referenced program of up
to 30,000 m of aircore drilling under contract
with Strandline Resources in Tanzania.
Strong contract performance, ongoing cost
management, capital discipline and outstanding
working capital management drove a substantial
increase in cash generation in Q4 2018. The
Group ended the period with $10.9 million in net
cash, up from $3.4 million at June 30, 2018.
Gross debt was reduced over the half year period
by $3 million to $9 million, positioning the Group
well for 2019.
Last year, Australia-listed SRG Global was
awarded a circa-A$20 million ($14.3 million)
contract for drilling works with services
company Downer at the BHP Mitsubishi Alliance-
owned Blackwater coal mine in central
Queensland. This award further reinforces SRG
Global’s mining business as a leading provider of
drilling services, according to the company. Works
under the contract are expected to use an existing
drilling fleet, with the work starting shortly.
Back in February 2018, Downer announced it
had been awarded a three-year contract, valued
at approximately A$600 million, to provide
mining and related services at Blackwater.
Meanwhile, SRG and Global Construction
Services merged in an effort to become a global
specialist engineering, construction and
maintenance group.
Drill bits and tools
Caterpillar has expanded its line of Tricone drill
bits, offering a wider range of diameters with the
high wear resistance, improved rock
fragmentation and superior rates of penetration
customers expect. “Cat ® Tricone drill bits are
designed for the most severe rotary blasthole
applications, yet are cost effective for a wide
range of drilling needs, according to Caterpillar.”
The new bit line includes six diameters
ranging from 171 mm (6.75 in) to 311 mm (12.25
in.). Their carbide shapes and cutting face
arrangements are optimised for high wear
resistance and improved rock fragmentation, and
the aggressive, long-lasting cutting structure
delivers a superior rate of penetration, according
to Caterpillar.
Caterpillar says its heat treatment technology
and advanced air-cooled bearing design yields
longer bit life and results in lower overall drilling
costs. “Cat bits also use innovative technology to
prevent cuttings and unbroken rock ridges from
inflicting severe wear on the cone. The result is
improved working life,” the company said.
Additionally, the gauge row design improves
resistance to diameter shrinkage, according to
the company.
Cat says its Tricone drill bits have
demonstrated significantly lower total cost of
drilling in head-to-head tests conducted in
copper, iron ore and coal mines. IM
ABSOLUTE MATERIAL FLOW CONTROL
CHUTE SYSTEMS & SOLUTIONS
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Tel: +27 (0) 11 827-9372
email: info@webachutes.com
www.webachutes.com
APRIL 2019 | International Mining 45