The Concept Of Drilling Supply And Service Contracts

Drilling is one of the most, significant cost components of any stoping or develop- ment operation. Two of the factors contri- buting to the drilling cost are the supply and servicing of consumable items such as drill rods and bits. The purchase cost of consumable items can be controlled to a large extent by using the correct balance of quality and price. However, the service cost is a less easily controlled factor and it is in this area where potential savings are significant. In June, 1976 a six month trial period was commenced at The Zinc Corporation, Limited and at New Broken Hill Consolidated Limited with two separate suppliers supplying and ser- vicing all longhole drilling parties (one supplier for each mine) at a guaranteed cost per metre. As a result of this six month trial period a new contract was commenced in December, 1976 with one supplier supplying and servicing all longhole drilling parties at both ZC and NBHC for a twelve month period. This concept has now been in operation for over twelve months and has proved to be a significant means of slowing down the increas- ing cost associated with drilling operations.