Loss of key contract will hit Master Drilling earnings

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Company plans to redeploy machines from the Kumba mine as quickly as possible after termination of the Kolomela deal

Master Drilling has a fleet of 150 raise-bore drills, the world’s largest. Picture: SUPPLIED

Anglo American subsidiary and JSE-listed Kumba Iron Ore terminated Master Drillings’ contract at Kolomela unexpectedly a few weeks ago despite the company complying on safety, BEE, local procurement and technology aspects, CEO Danie Pretorius said. “The sad part was we were doing an excellent job, and safely, getting a pat on the back, and then getting the boot. That’s tough to take on the chin.The financial consequences will be felt, with the loss of the contract accounting for 7%-15% of group revenue, CFO André van Deventer said.

 

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