Shaft Sinkers gets another Randgold fillip

Recovery stock Shaft Sinker Holdings has been awarded the vertical shaft contract for Randgold Resources' Kibali gold mine in the Democractic Republic of the Congo.

The contract award follows on from the announcement on September 20th that Shaft Sinker had been chosen by Randgold to initiate mobilisation activities at Kibali. The combined mobilisation and vertical shaft contracts have an estimated total value of £82.3m. The contracted work is scheduled to be completed in 2016.

The mobilisation phase is progressing on schedule and as a result of the contract the scope of work is extended to include the sinking and lining of the main shaft to the final depth of 760 metres, as well as associated development and civil works.

The addition of this new contract is in line with management's expectations of revenues for the 2012 financial year.

"We are confident that there will be more conversions of the new business pipeline going forward," said Alon Davidov, Chief Executive of Shaft Sinker.

Shaft Sinkers Holdings specialises in the sinking of particularly deep and wide vertical and decline shafts and the development of underground infrastructure, used primarily in mining and hydro-power applications.

Its share price was hit at the end of 2011 after it suspended work for its Russian client EuroChem at the latter's Volgakaly potash mine. Work on the mine was terminated with effect from April 20th 2012, leading to the filing of a claim against the company by EuroChem. Shaft Sinkers, meanwhile, is preparing claims against EuroChem.

JH