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MACA expands WA presence with Mining West acquisition

Mining equipment, Mining mergers and acquisitions, Mining services, Precious metals, Steel and iron ore, , , , , , , , ,

MACA Ltd has completed the acquisition of the Mining West business from Downer EDI Ltd, bringing with it four contracts at long-life mining assets in Western Australia.

The Mining West business currently comprises four contracts at Karara (Ansteel), Eliwana (Fortescue Metals Group), Cape Preston (Citic Pacific) and Gruyere (Gold Fields, Gold Road Resources), with each of the four novating successfully to MACA, taking effect from completion, MACA said.

Additionally, in excess of 96% of the Mining West workforce has accepted employment with MACA, the ASX-listed contractor said.

MACA’s CEO and Managing Director, Mike Sutton, said: “Acquisition of the Mining West business will provide MACA with a very meaningful addition of a large-scale mining fleet that is currently engaged across four long-life projects, all with quality customers that are well known to me and other key members of MACA’s management team.”

This fleet comprises 14 excavators and shovels, 65 dump trucks, 11 surface drills and 36 other ancillary machines.

“With the inclusion of Mining West, MACA now has total contracted work in hand of A$3.3 billion ($2.5 billion) at December 31, 2020, that provides a robust revenue base well past financial year 2025. MACA remains very active with its tendering activities and is well placed to pursue a significant number of opportunities across both current and new projects.”

Downer says it will receive over A$200 million in cash proceeds as a result of the sale.

MACA increases open-pit scale by acquiring Downer EDI’s Mining West business

Equipment maintenance, Mine operation news, Mining equipment, Mining mergers and acquisitions, Mining services, Precious metals, Steel and iron ore, , , , , , , , , , , , , , , , ,

MACA has entered into a binding agreement to acquire Downer EDI Limited’s Mining West business in a deal that could involve a consideration of A$175 million ($132 million).

Just last week, MACA said it was considering the potential purchase of Downer EDI Limited’s Mining West division as part of a stated plan to explore and pursue growth opportunities that will deliver “value to shareholders on an ongoing basis”.

The Mining West business currently comprises four large contracts at the long-life assets of Karara (Ansteel), Eliwana (Fortescue Metals Group), Cape Preston (CITIC Pacific) and Gruyere (Gold Fields, Gold Road Resources).

MACA’s CEO and Managing Director, Mike Sutton, said the acquisition provided MACA with a very meaningful addition of a large-scale mining fleet currently engaged across these projects. This comprises 14 excavators and shovels, 65 dump trucks, 11 surface drills and 36 other ancillary machines.

The fleet being acquired is currently fully utilised, or in the process of being deployed to projects, with the equipment having mixed life (with machines being on average mid-life). MACA says its due diligence has confirmed the machines are in good working order, having been well maintained by Mining West’s internal plant department.

With the inclusion of Mining West, MACA now has total contracted work in hand of over A$3.4 billion, which provides a robust revenue base well past its 2025 financial year, Sutton added.