Canada?s Major Drilling Group bags Freeport drilling contract

Canadian drilling service company Drilling Group International Inc. on Tuesday announced that its wholly owned Indonesian subsidiary P.T. Pontil Indonesia had been awarded a five year contract for all surface and underground exploration drilling to be conducted at P.T. Freeport Indonesia's Grasberg mine located in the Province of Papua.

The company said the contract would generate revenues of around US$8 million annually, representing an incremental increase in Indonesian revenues of approximately US$4 million per year.

P.T. Freeport Indonesia, a subsidiary of Freeport-McMoRan Copper & Gold Inc., commenced 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.

As part of the contract, P.T. Pontil is acquiring the assets of P.T. Freeport Indonesia's diamond drilling division, including equipment and inventory, allowing drilling to continue uninterrupted. The contract may be terminated, during its term, upon the provision of six months notice.

For the past five years, P.T. Pontil has maintained an office and workshop at the mine site to service its existing surface and underground drilling contracts for P.T. Freeport Indonesia. In addition to on-site support, the operation will be supported from Major Pontil Pty Limited's head office located in Queensland, Australia.(alex)