AMS secures contract extension for Nsuta manganese mine

27 February 2019 (Last Updated February 27th, 2019 11:58)

Mining services company Ausdrill’s wholly owned subsidiary, African Mining Services (AMS), has secured a contract extension for the Nsuta manganese mine located in the western region of Ghana.

AMS secures contract extension for Nsuta manganese mine
The new contract will see the extension of the existing equipment hire contract with GMC until February 2021. Credit: astrid westvang.

Mining services company Ausdrill’s wholly owned subsidiary, African Mining Services (AMS), has secured a contract extension for the Nsuta manganese mine located in the western region of Ghana.

AMS won the contract extension worth A$$123m ($88m) from Ghana Manganese Company (GMC) for a period of two years.

For the last two years, AMS has been providing equipment hire for the Nsuta manganese mine.

Under the contract extension, the existing equipment hire contract with GMC will be extended until February 2021.

Ausdrill managing director Mark Norwell said: “We are very pleased to announce this contract extension, which is testament to the good working relationship AMS has established with GMC over the years.

“The GMC contract extension will continue to meet our client’s requirements for on demand load and haul equipment while also providing us with committed utilisation of our existing fleet.”

“We are very pleased to announce this contract extension, which is testament to the good working relationship AMS has established with GMC over the years.”

The contract, which initially started in March 2017, is an hourly hire service agreement for load and haul equipment, with minimum hire hours applicable for all major equipment on the mine site.

AMS will be exclusively responsible for maintaining the equipment and will execute the contract using  Nsuta’s existing fleet, as the company will not make an investment in any new equipment.

GMC holds a mining concession for manganese over an area of 175km² in and around Nsuta, less than 3% of which has been mined till date.

The first manganese from the site was mined in 1916.

Through its wholly owned subsidiaries, Consmin owns 90% of GMC and the remaining 10% is owned by the Government of Ghana.