RESOURCESTOCKS

Innovative driller pushes new frontiers

HAVING established itself as an innovative and safe drilling services sector leader in the Southe...

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Asia-focused Indodrill is launching into frontier mining territory in the Northern Hemisphere, basing its operations in none other than Braveheart territory.

Since managing director John Horne and business partner Joe Fisher bought out the company's board in 2010, Indodrill has established a reputation as an innovative, professional, safe, cost- and time-efficient drilling contractor operating out of Australia, Indonesia, Malaysia, Cambodia, the Philippines, Vietnam, Myanmar and Laos, with Horne based in Singapore.

While Horne, originally from the place known locally as "the kingdom of Fife" in Scotland, joked that basing Indodrill's Northern Hemisphere operations in Alloa (about 15 minutes' drive west of his home town of Kincardine) was about "going back to my home roots", it made sense as the UK was one of several European economies freeing up its red and green tape to alleviate a looming raw materials crisis. Alloa is in Scotland's Central Lowlands region where Mel Gibson's 1995 Oscar-winning movie Braveheart was set and is where Indodrill is set to lead what will no doubt lead a more successful revolution - this time in drilling innovation and expertise - across Europe and its other targeted regions.

The company's new outfit will be called Indodrill (EMEA) Ltd (Europe, Middle East and Africa), reflecting its focus on regions where opportunities are arising and where Horne believes his company offers a greater level of innovation, professionalism and cost efficiency than the status quo.

In some emerging Asian countries, the economies are also still developing their mining regulations, so Indodrill, with its in-country experience, also assists its mining clients with dealings with government and other relevant local channels.

It will also be the case in the Middle East, and it has targeted regions where discussions with local miners show they are looking for a "really good drilling contractor with the professionalism that we can provide".

The company has already received some positive interest from the Middle East and Africa , so it is just a matter of establishing a client base and building local relationships - nothing they are not used to, having perfected the art throughout Asia.

"I see a few opportunities for our knowledge to be transferred into these areas, especially Africa and the Middle East, whose countries are very much still developing," Horne told RESOURCESTOCKS at Mines and Money Hong Kong - part of his strategy of ramping up Indodrill's expansion.

"In Europe we find there are quite a few Canadian and UK-listed companies, but at the moment, having spoken to several juniors operating there, they feel that what we offer them is better than what they're being given by the contractors in their respective countries.

"There are a few countries now starting to become relatively pro-mining, like Spain and Portugal, while Turkey is very good on its mining laws. Others like Romania and certain parts of Europe have become easier to trade in, especially with the European Economic Community.

"We feel we can offer the expertise and professionalism that has been well-received in the Southern Hemisphere and apply it to the Northern Hemisphere.

"At the moment the Middle East market seems to be covered by one or two local and overseas contractors and others in the region that we feel don't have the knowledge, quality, professionalism and expertise and equipment that we have.

"I feel that places like the Middle East and parts of Africa are relatively unexplored, and there is quite a bit of interest by foreign-listed juniors and state-owned entities, though many of the big mining companies are there.

"Turkey is the shining example at the moment. It will be a hard market to break into as there are a few local and private contractors operating there, but it's a market where we'll have to work hard and convince prospective clients that we're better than what they already have and can do it more cost-effectively, safely and professionally."

Indodrill has already shown leading-edge innovation with the recent addition of sonic drilling to its repertoire. Through a partnership with Geosonic Drilling Scotland, Geosonic has 14 sonic drills currently working all over the UK and other parts of Europe.

Sonic drills do not use any fluids, unlike other more conventional methods, which can be contentious in built-up areas, which is a big deal in several European countries. Sonic drilling drills by vibration with an oscillator atop of the drill head that vibrates its way through, which gives enhanced core recovery in alluvials and very soft soils in particular.

While it is slightly more expensive, like any new technology, it is not a great deal more. The sonic drill can be used to check old tailings dams and for mineral sands - anywhere where it is hard to get the recovery rate up. There is also an opportunity for sonic drilling given Europe's recently booming construction industry.

It has been a rapid and entertaining journey for Indodrill since Horne and his Jakarta-based co-director Fisher bought out the old management in February 2010. They have since expanded the company from 23 drill rigs to 85, with an impressive rig availability of about 95% due to its back-up systems, spare parts, personnel and expertise.

"I have over 20 years in Asia alone and 45 in the industry," Horne said.

"Joe also has over 49 years' experience in Asia and Australia, and we know how to operate in these areas with the culture, people and the way the governments want you to do things."

"Some clients come in from different countries and aren't so sure about how to operate in these Asian countries. We assist them in that as we have the government relationships in each country we operate."

Indodrill's expansion has also led it to expand and operate with 21 underground drills, 18 of which are the largest depth capacity underground rigs available on the market. The company added significantly to various other models of drill rigs and tailored them to certain clients' expectations.

"We now have an expertise in drilling very deep holes over 2000m, which we're currently doing for some clients in Indonesia, and we're a great success and have very happy clients," Horne said.

"We've also designed and developed what we believe will be the largest heli-portable rig in the world, which will go over 2200m.

"It's still in R&D phase but should be out by the time this magazine goes to print [June]. It will have a maximum weight of 500kg per single unit. You will still have some mobilisation and de-mobilisation costs from where ever it's been flown to the mine or exploration area, but you don't need to worry about roads on the exploration property as you can go to places where there is no access.

"We're currently drilling some deep holes in the middle of the jungle in Indonesia with a similar model. The model we've recently been perfecting is even more sophisticated than the previous ones we've been operating. We're quite proud of that. We're not really a manufacturer. We just build against the clients' specifications."

Indodrill's two biggest operations at the moment are Indonesia and the Philippines, with large workshops, offices, warehouse facilities and complete spare parts inventories in both countries. The company also has offices and workshops in every other country it operates in.

"We're still fairly young. Joe and I just wish we were 10 years younger. We're proud of what we've achieved to date and the time in which we've done it," Horne reflected.

"For the past four years we've been under the radar, servicing existing clients, but now we want to expand our client base, get the Indodrill name out there and really gain a global footprint. Hence we started operating in the Northern Hemisphere.

"It's a work in progress."

*A version of this report, first published in the June/July 2014 edition of RESOURCESTOCKS magazine, was commissioned by Indodrill.

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