Transfield Services‘ subsidiary Easternwell has received a contract from Fortescue Metals Group to provide drilling services and associated equipment to its mining operations in Western Australia.

Under the terms of the agreement, Easternwell will provide three rigs to Fortescue’s Christmas Creek, Nyidinghu and North Star sites initially, and additional rigs and services in future.

Transfield Services managing director and CEO Peter Goode said the contract is a strategically significant win for Easternwell and the broader Transfield Services group as it establishes a relationship with one of the country’s major mining and exploration companies.

“It also further underpins Easternwell’s growth for FY12 and beyond, which we identified at the time we bought the business,” Goode said.

Fortescue Metals Group is planning to increase iron ore production from 55 to 155Mt by 2014.