Utah-based, drilling services provider Boart Longyear, which is listed in Australia, has been forced to cut more than 1000 jobs worldwide since the beginning of the year due to lower demand for its services.

Boart chief executive Richard O'Brien warned that the utilisation could fall 20 per cent in the year compared to the previous year.  He was speaking to the shareholders at the company's annual meeting in Melbourne.  The fall in the contract mining sector has accelerated in recent months and the company expected to generate revenues in at the lower end of analysts' forecast range of between $US1.466 billion and $US1.726 billion.

"The downturn in capital and exploration spending in the mining sector globally has clearly reduced the demand for drilling services and products," O'Brien said.

The company expects its Earnings before interest tax, depreciation and amortisation to come in the lower end of between $US199 million and $US271 million.  The company had recorded revenues of $US2.01 billion and adjusted earnings of $US322 million during the previous year.

Shares of the company fell 0.6 per cent to close at 78 cents.  The shares have fallen 70 per cent since February as the market expects a decline in the mining contractors.