DFE New Zealand owner Toby Lecher hopes the Iluka Resources project will lead to more overseas contracts. Photo: RNZ / Robin Martin
A Taranaki engineering company is hoping an multi-million dollar contract to design and build two drilling processing units for an Australian mining giant is a sign of things to come.
DFE New Zealand purpose-built units Mud City 1 and Mud City 2 for Iluka Resources - a multi-billion-dollar publicly-listed mining company specialising in mineral sands exploration.
Toby Lecher, owner of DFE since 2017, said landing the Australian contract was significant.
"It's kind of critical for the local economy that as oil and gas exploration and development remain relatively static that companies like ours seek out opportunities in other areas and other sectors to keep busy and stay profitable."
Lecher said it was able to use local companies that had developed around oil and gas to pull of the project.
"We've clocked up 40,000 hours on the project and it's probably involved 40 or 50 people over the last 12 months and it's injected millions and millions of dollars into the local economy."
Lecher said DFE custom designed drilling fluid - often referred to as mud - mixing and recycling systems for tunnelling, horizontal directional drilling, oil and gas, geothermal type drilling operations.
"When you make a hole you've got material that needs to be removed and when you're drilling hundreds of thousands of metres you need a fluid to pump down the hole to carry it back out to the surface so you can keep your hole clean, keep your equipment cool and hold the hole open, so it doesn't collapse."
Iluka Resources deployed directional drilling to obtain the mineral sands it targeted. This requires drilling fluids to be mixed, recycled, and managed all the of work that DFE specialised in.
Lecher said the Australian units were unique because they were portable and could be moved without the use of a cranes and they could be controlled via a computer console.
"That's generally onsite but we can also tap into the unit and see what's happening from here in New Plymouth and it could be operated from anywhere in the world."
Lecher was hopeful the project would generate more overseas contracts.
"If this particular project and mining technique works out well there's potential for more of these units to be developed here and as word spreads about what we've done and people get to see the units in action it could develop into future work for us as well."
DFE operations manager Joe Penberth said Iluka Resources were tough taskmasters.
"The design specifications included everything from paint thickness to remote control - meaning that, technically, the equipment could be operated from anywhere in the world. This is one of the most complex projects we've ever delivered.
"We won the contract in March 2024, and it's been an incredible effort by the team to get here. For us, one of the most rewarding parts is knowing that we have the talent and capability in Taranaki to get what we need done."
Penberth estimated that about 70 percent of the project was delivered using local businesses.
"Businesses in Taranaki are used to working on high-spec projects because we've worked in oil and gas for so long. This is what makes us unique. We say, 'yep, we can do that', and just get it done.
"I also think we like a challenge here in Taranaki."
Te Puna Umanga Venture Taranaki chief executive Kelvin Wright said DFE were a great example of what could be achieved in the region with the right attitude.
"This project saw up 40 contractors involved from several different companies, so it's incredibly valuable for the local economy. It's fantastic to see businesses adapting and penetrating parallel markets, particularly overseas."
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
