March 25 Canada's Major Drilling Group
International Inc said it will shut its Australia
operations as part of a restructuring, citing high costs and an
industry downturn in that country.
Major Drilling said the close-down process will take about
six months and it will incur asset write-downs and cash
close-down costs, the total amount of which will be determined
in the next two months.
The Australia operations comprised about two percent of its
global revenue in the third quarter, the provider of drilling
services mainly to the mining industry said late
Major Drilling, a bellwether for the mining industry, said
earlier this month that it was considering all restructuring
options for its Australia branch, including the possibility of
withdrawing from the market.
The company had at that time said it hadn't seen any
improvement in the situation in Australia from the beginning of
the year as it fought low utilization rates for surface rigs and
intense price competition in Eastern Australia.
Major Drilling said it would shift the assets used in
Australia to its operations in other parts of the world.
(Reporting by Arnab Sen in Bangalore; Editing by Gopakumar