Boart Says Demand For Mining Services Rising In S America, W Africa

Mining services provider Boart Longyear Ltd. (BLY.AU) said Thursday it expects to draw an increasing portion of its revenue from South America and West Africa, as miners bolster their exploration efforts in the regions in search of commodities like copper and gold.

The company, which provides mineral exploration drilling services and drilling products to mining companies, currently cites Asia Pacific as its most significant region for demand, accounting for around 26% of its sales.

However, orders have been rapidly increasing from South America and West Africa, Chief Executive Craig Kipp told reporters at a press conference in Sydney.

"[The major miners] are going to Chile and Peru, primarily for copper, and going for gold...in Burkina Faso and Mali, that part of the world," Kipp said.

Mining companies in Peru plan to invest about $53 billion in new mines and expansion projects this decade, while a raft of gold companies, including IAMGOLD Corp. (IAG) and Randgold Resources Ltd. (GOLD), are targeting new discoveries in the relatively under-explored areas of West Africa.

Kipp said there are some countries Boart refuses to work in, though, due to inherent problems with corruption. "We have been asked to go into some of these countries and we just say 'no'," he said, without citing specific countries.

-By Rhiannon Hoyle, Dow Jones Newswires; 61-2-8272-4625; [e-mail]