Northcote says that Mayan Drilling Fluids, its joint venture formed to develop a remediation facility in Comalcalco, Mexico, has entered into an agreement whereby it will perform remediation services with a potential value in the region of US$887,500. This work will be undertaken ahead of construction of the facility and utilise the remediation team that MDF already has in place.
•MDF will operate as a sub-contractor and will be responsible for the remediation services on contaminated land at four different locations spanning approximately 7.4 hectares in total
•The services are to be completed over the next 3 to 4 months and will be performed using existing resources available to the joint venture
•The estimated revenues associated with completing the services at all four locations are estimated to be 14.3 million Pesos (US$887,500)
•Positive cashflow generated by the contract will make a substantial contribution towards the construction of the recently announced remediation facility