Energold eyes RI mining industry for expansion

Toronto-listed drilling service company Energold Drilling Corp is looking to expand its business in Southeast Asia, including Indonesia to capitalize on rapid growth in the region's mining industry, the Wall Street Jurnal reported.

Energold's expansion comes at a time of increasing interest in Indonesia, the Philippines and Vietnam's substantial resources, which include coal, gold, silver, copper, nickel and tin.

Growth in mining activity in the countries means higher demand for mining services such as drilling, Jerry Huang, investor relations manager, said on the sidelines of an industry conference in Singapore.

"What we say to investors is that they're not investing in the mining project...they're investing in the guys with the picks and shovels," he said. "We're definitely expanding in this region."

Energold has around 250 drill rigs in 22 countries around the world. Its customers include BHP Billiton Ltd., Vale SA and Rio Tinto. The company is particularly active in Mexico, and its dominant market is South America.

Within Southeast Asia, Energold is interested in increasing its activities in Vietnam, the Philippines and Indonesia, where it's already active in the coal sector.

The company is also interested in Myanmar, Huang said, although its mining industry remains at a very early stage due to a lack of investment in recent years during the country's military dictatorship.

"It's an interesting area that we're looking at...we're assessing opportunities there," he said. (*)