This contract has an initial three-year term, with a two-year extension option by mutual agreement.
“Kestrel is a highly valued customer of Lucas and together we have developed a strong long-term working relationship,” AJ Lucas Drilling Division Chief Executive Officer Brett Tredinnick said.
AJ Lucas’ long-term relationship with Kestrel Coal extends to the supply of six rigs as well as the provision of up to 100 staff. With this new contract, that number is anticipated to increase.
“The drilling division now has an order book of which is expected to deliver more than $200 million in revenues over the next two years subject to customer mine plans.
“This goes a long way to supporting and underpinning the business for many years to come,” AJ Lucas Chairman Phil Arnall said.
The Kestrel Coal operations is located approximately 60 kilometres north-east of Emerald. The underground mine produces high-quality hard coking coal for export.
Want to receive the latest industry news and project updates straight to your inbox? Subscribe to the PlantMiner blog today.