Major Drilling Unit/Pact at Grasberg MinePublished by MAC on 2003-02-26
Major Drilling Unit/Pact: Sees Revenues of $8 million/Year from Pact
Feb 26 2003 (Dow Jones)
Moncton, N.B. - Major Drilling Group International Inc.'s (T.MDI) P.T. Pontil Indonesia unit has received a five-year contract for all surface and underground exploration drilling to be conducted at P.T. Freeport
Indonesia's Grasberg mine in the Indonesian province of Papua. In a press release, Major Drilling said it expects the contract to generate revenues of about US$8 million annually, representing an incremental increase in Indonesian revenues of about US$4 million a year.
As part of the contract, P.T. Pontil will acquire the assets of P.T. Freeport Indonesia's diamond drilling division, including equipment and inventory, allowing drilling to continue uninterrupted, it said. The contract may be terminated, during its term, upon the provision of six months' notice, it noted.
P.T. Freeport Indonesia, a subsidiary of Freeport-McMoRan Copper & Gold Inc. (FCX), began mining operations at the Grasberg mine in 1989. The massive tonnages of copper and gold bearing ore make it one of the largest copper/gold mines in the world, Major Drilling noted.
Major Drilling is a metals and minerals contract drilling service company.
Company Web Site: http://www.majordrilling.com
-Wendy Tsau, Dow Jones Newswires; 416-306-2100