Drones-as-a-service (DaaS) provider RocketDNA Ltd (ASX: RKT) has secured a contract with South32 (ASX: S32), a global mining and metals company, to provide drone surveying services at two mine sites in South Africa. The contract, spanning a period of five years, has a Total Contract Value (TCV) of $1.180 million and an Annual Recurring Revenue (ARR) of $236k.
The agreement allows for termination after the first six months, subject to a minimum three-month notice in writing and an early termination fee equivalent to the contract price applicable to three months. Standard termination provisions for non-performance also apply.
Once alluded to via zingers like “CrapCo”, South32 is a global mining and metals company, producing commodities that are used in many aspects of modern life. Its operations, development options and exploration programs are diversified by commodity and geography.
South32’s manganese—typically used to produce iron and steel alloys—operation in South Africa is located in the manganese-rich Kalahari Basin in the Northern Cape region, accounting for 80% of global manganese reserves. The operation comprises two manganese mines and the Metalloys manganese alloy smelter in Meyerton, Gauteng, which is currently on care and maintenance as it evaluates future options.
South32 holds a 44.4% interest in the Hotazel Manganese Mines (HMM) consortium, which includes the Mamatwan and Wessels mines, while the remaining interest is held by Anglo American Plc and Broad-Based Black Economic Empowerment entities.
Formerly known as Delta Drone, RocketDNA underwent a rebranding in June 2023 to consolidate its business divisions under a unified brand. RocketDNA offers a range of services, including aerial surveying and mapping, security and surveillance, and blast monitoring and fragment analysis. Using an outsourced service supported by artificial intelligence and rapid data processing, RocketDNA enables enterprise customers in the Mining, Agriculture, and Critical Asset industries, like South32, to focus on ground operations while leaving aerial tasks in capable hands. The Company’s mission is to democratise drone data, enabling autonomous systems and empowering decision-makers in various industries.
RocketDNA’s contract with South32 in South Africa follows the Company’s achievement of Basic Aviation Risk Standard (BARS) registration for its operations in Australia and South Africa. BARS registration, increasingly recognised by large mining, oil and gas operators, and other organisations utilising airspace, has become a prerequisite for service providers, particularly tier-1 and tier-2 operators.
Earlier this year, South32 made history by becoming the first mining company to have its critical minerals project accepted into the US government’s fast-track program, known as Fast-41. This program, established in 2015, aims to simplify and streamline the approvals process for projects involving multiple agencies. South32’s Hermosa project, located in Arizona and focused on zinc, silver, lead, and manganese, gained admission to this program.
With South32’s global presence and RocketDNA’s newly-rebranded services, the duo can hope to metaphorically unearth gold in their collaboration.
Alinda is a Business Reporter for The Sentiment
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