Tag Archives: MACA

Thiess in leading position to take over fellow contract miner MACA

Thiess looks like winning the acquisition tussle for fellow contract miner MACA after an increased all-cash offer was recommended by the MACA Board and NRW Holdings said it would no longer be pursuing a potential deal.

Thiess recently increased its offer price from A$1.025 ($0.71) of cash per MACA share to A$1.0751 of cash per MACA share, with the increased offer price representing a premium of 49.2% to the MACA one-month volume weighted average price as at July 25, 2022.

This followed a merger approach from NRW Holdings in August, which implied a consideration of A$1.085/share, valuing the equity of MACA at A$375 million. MACA said it did not consider this merger proposal as superior to the existing Thiess offer, continuing to recommend shareholders accepted the offer from Thiess.

Following this latest increased offer from Thiess, NRW confirmed it no longer intended to pursue the acquisition of MACA.

Including the acceptances received from MACA founders and MACA directors, Thiess’ total relevant interest in MACA is currently 15.9%.

Thiess, in its initial Bidder Statement, said it intends to operate MACA in materially the same manner supported by MACA’s workforce, brand and assets, and to continue its highly regarded community partnerships.

The proposed acquisition of MACA by Thiess is consistent with its diversification strategy, with a particular emphasis on increasing its presence within metals and minerals hard-rock mining operations in Western Australia, it says.

To this point, the company’s Western Australian hard-rock mining exposure has consisted mostly of work with BHP’s Western Australia nickel assets, in addition to a recent contract award at the Covalent Lithium Joint Venture project.

MACA has exposure to the state’s iron ore sector thanks to contracts with Fortescue and BHP; the burgeoning gold segment through contracts with Regis Resources, Ramelius Resources, Capricorn Metals and Red 5; and nickel and lithium exposure from the Ravensthorpe mine and Pilgangoora project, respectively.

Thiess also said in its Bidder Statement that it sees “a significant opportunity to combine the operational capability of both companies to continue enhancing service quality, particularly in relation to technical solutions such as deploying autonomous machinery or reducing the carbon emissions of mining services on project sites”.

Back in March, MACA announced a partnership with SafeAI to form an MoU to retrofit a mixed fleet of 100 mining trucks across multiple locations with autonomous mining technologies.

With the satisfaction of the ACCC condition on August 26, 2022, the Thiess offer is only subject to FIRB approval, no Prescribed Occurrences, no issue of convertible securities, derivatives or other rights and 90% minimum acceptances, Thiess says.

Thiess’ revised offer is scheduled to close on September 12 unless otherwise extended.

Thiess targets WA hard-rock mining sector expansion with MACA offer

Thiess looks like gaining further market share in the key hard-rock mining market of Western Australia after having a bid accepted for fellow mining contractor MACA.

The all-cash offer to acquire 100% of the shares of the company at A$1.0251/share represents a 42.2% premium to the MACA one month volume weighted average price as of July 25, 2022.

MACA’s Board has unanimously recommended that its shareholders accept the offer in the absence of a superior proposal and subject to an independent expert concluding, and continuing to conclude, that the offer is favourable to MACA shareholders.

Thiess says it intends to operate MACA in materially the same manner supported by MACA’s workforce, brand and assets, and to continue its highly regarded community partnerships.

The proposed acquisition of MACA by the Thiess is consistent with its diversification strategy, with a particular emphasis on increasing its presence within metals and minerals hard-rock mining operations in Western Australia, it says.

To this point, the company’s Western Australian hard-rock mining exposure has consisted mostly of work with BHP’s Western Australian nickel assets, in addition to a recent contract award at the Covalent Lithium Joint Venture project.

MACA has exposure to the state’s iron ore sector thanks to contracts with Fortescue and BHP; the burgeoning gold segment through contracts with Regis Resources, Ramelius Resources, Capricorn Metals and Red 5; and nickel and lithium exposure from the Ravensthorpe mine and Pilgangoora project, respectively.

Thiess also said in its Bidder Statement that it sees “a significant opportunity to combine the operational capability of both companies to continue enhancing service quality, particularly in relation to technical solutions such as deploying autonomous machinery or reducing the carbon emissions of mining services on project sites”.

Back in March, MACA announced a partnership with SafeAI to form an MoU to retrofit a mixed fleet of 100 mining trucks across multiple locations with autonomous mining technologies.

Michael Wright, Executive Chair and Chief Executive Officer of Thiess, said: “We believe our offer is an attractive opportunity for MACA shareholders as it provides certainty of cash, a strong premium and an ability to achieve liquidity for their entire MACA shareholding. We are pleased to have the support of the MACA Board for our Offer.

“The proposed acquisition of MACA is an important part of Thiess’ strategy to diversify its operations across commodities, services and geographies. Thiess has a high regard for MACA’s service quality, and we believe our industry experience positions us well to enhance MACA’s value proposition to clients and employees. We recognise and intend to maintain and grow MACA’s strong brand and presence in the Western Australian market. Thiess also looks forward to supporting MACA to meet the evolving needs of its client base through promoting further investment in low emission and technology-led solutions.”

MACA civils contract book swells with new Rio Tinto, Roy Hill work

MACA Limited has announced three new civil contract awards with a total value of approximately A$115 million ($79.5 million), two of which are for mining companies in the Pilbara region of Western Australia.

The contractor has been awarded an early works contract on Rio Tinto’s Western Range Project, 8 km west of Paraburdoo in the Pilbara.

The project, which is expected to generate approximately A$60 million in revenue, consists of pre-approval works for construction of a camp pad and access road, in addition to crushing and screening work.

The delivery of the works will commence in the second half of 2022 for a duration of approximately 12 months.

MACA has also been awarded a further civil works package with Roy Hill Iron Ore Pty Ltd at the Roy Hill iron ore operation in the Pilbara. The Roy Hill project is owned by Hancock Prospecting Pty Ltd, Marubeni Corporation, POSCO and China Steel Corporation, and is 115 km north of Newman in the Pilbara.

The package consists of supporting Roy Hill with the Sierra Hydraulic Structure works, and is expected to generate A$16 million of revenue with delivery of the works commencing this month and expected to run through to the end of the calendar year.

MACA incoming CEO, David Greig, said of these contracts: “These awards are great examples of MACA’s deliberate pursuit of capital light earnings, improved revenue diversity and attractive delivery models. MACA looks forward to delivering these projects and contributing to successful outcomes for our clients.”

MACA receives contract extension from Regis Resources at Duketon North

MACA has announced the extension of its mining services contract with Regis Resources Ltd at the Duketon North Operations (DNO) in Western Australia, having provided mining services at the project since 2010.

The service offering includes a dedicated workforce of 258 personnel delivering drill & blast, load & haul, plant maintenance and technical services across the Regis open pits in the area.

This extension is expected to generate up to A$50 million ($36 million) per year in revenue for MACA and will utilise the contract miner’s existing fleet on site. DNO continues to run alongside the Duketon South Operations (DSO).

Both parties have signalled their intention to explore conversion of both the DSO and DNO contracts into an amalgamated partnership-style life of mine alliance arrangement post June 2023, MACA said. The asset produced 356,000 oz of gold in the 2021 financial year.

MACA’s work in hand position including this contract is in excess of A$2.6 billion at April 2022.

MACA CEO, Mike Sutton, said: “MACA is delighted to continue its long-standing relationship with Regis at the Duketon North Operation. Our team has a long-standing relationship with Regis and MACA is proud to be an ongoing part of this operation. This project will be undertaken utilising existing fleet and contributes to MACA’s secured mining work in hand in the Goldfields region, ensuring future work continues to consist of a balanced portfolio of commodities.”

MACA to collaborate with Aquirian’s TBS on Collar Keeper developments

Aquirian Ltd’s wholly owned subsidiary, TBS Mining Solutions Pty Ltd, has entered into a binding technology Memorandum of Understanding (MoU) with MACA Mining Pty Ltd, a subsidiary of MACA Ltd, related to collaborating on the development and commercialisation of the Collar Keeper® System.

MACA is an ASX-listed contracting group providing services to the mining and construction industries. It specialises in contract mining and crushing, civil construction and infrastructure maintenance, and mineral processing solutions.

The MoU marks a significant milestone in TBS’ strategy to develop and commercialise its exciting technology, Aquirian said. The support and access to equipment in an operating environment, provided by MACA, is a crucial part of the development, prototyping and testing of the Collar Keeper System.

This patent-pending system is a combination of Aquirian-developed, retrofittable drilling apparatus combined with its existing Collar Keeper. The technology represents a step change in managing blasthole quality and is targeted to provide a unique solution to a range of different blasting environments with global applications, the company said.

Greg Patching, Aquirian Executive Director Business Development & Innovation, said: “We are thrilled to partner with MACA, and it’s exciting to see our technology pathway take another key step forward in terms of development and commercialisation for our customers, their clients and our shareholders.”

The initial focus for the Collar Keeper System will be on mines in Western Australia operating with smaller diameter holes in challenging ground conditions, where high-cost and time-consuming collar piping is traditionally used.

The traditional method of collar piping has not changed in over 40 years and introduces hazards as well as, cost, time and quality issues, and poor blast outcomes for clients, according to Aquirian.

In addition, the poor blasting outcomes lead to further downstream costs in load and haul, and the processing of mined material.

Last month, Aquirian reported it had successfully completed the Stage II prototype trial of Collar Keeper on an existing drill rig operating in a hard-rock gold mining environment in the mid-west of Western Australia. The trial successfully tested fitment to existing drill rigs and delivered marked improvements to drilling rates and drill hole quality, according to the company.

TBS, under the MoU, will be responsible for all design, engineering, testing and management of the Collar Keeper System from development through to commercialisation. It will maintain ownership of all IP associated with the development of the Collar Keeper System and ongoing commercialisation control and management.

MACA, meanwhile, will provide operational and site support to TBS for testing and refinement of the Collar Keeper System from development through to commercialisation. It will also receive Foundation Customer status from TBS for the system, including preferred commercial terms for the system and associated products for a period of three years from the date of commercialisation.

MACA wins 12-month extension at Pilbara Minerals’ Pilgangoora lithium project

MACA Ltd has announced the extension of its mining services contract with Pilbara Minerals for a further 12 months at the Pilgangoora lithium project, in Western Australia, following Pilbara Minerals exercise of its 12-month option.

The Pilgangoora project consists of open-pit mining services including drilling and blasting and loading and hauling, and the extension is expected to generate approximately A$70 million ($51 million) in revenue for MACA over the 12-month term through to November 2022. MACA’s work in hand position as of September 21 is A$3.1 billion, it says.

MACA CEO, Mike Sutton, said “MACA is very pleased to be able to continue working with Pilbara Minerals at the Pilgangoora lithium-tantalum project, having commenced operations on site in 2017. We strongly value the collaborative working relationship established with the Pilbara Minerals team over the previous four years and are proud to be an ongoing part of this project.

“For MACA, this extension secures our strong position in the Pilbara region and also provides continued involvement in the lithium industry.”

MACA Interquip delivers to plan at Capricorn’s Karlawinda gold project

The MACA Interquip team has successfully reached completion of services provided to Capricorn Metals at the Karlawinda gold project in the Pilbara region of Western Australia, the company has confirmed.

MACA Interquip undertook steelwork procurement and SMP (structural, mechanical, and piping) construction services for the 4 Mt/y three-stage crushing plant, grinding and conventional carbon-in-leach plant.

Plant commissioning is now complete and the MACA Interquip team has begun to demobilise from site after a successful job done.

Project Manager, Brett Smith, said the success of this project is a testament to the skillset, dedication and diligence of the MACA Interquip team.

“Construction is complete and now the plant is efficiently up and running and being ramped up to nameplate capacity. As our works came to a close, our teams remained highly committed to delivering a safe work environment and achieved an LTI-free project,” Smith said.

MACA Mining, meanwhile, is carrying out open-pit mining services including drilling & blasting and loading & hauling at the project as part of an agreement the companies signed recently.

Based on a 1.2 Moz reserve, Capricorn envisages a 12-year mine life at Karlawinda, with an annual production target of 110,000-125,000 oz of gold. The company plans to mine a single large, low strip ratio open pit and process it through the carbon-in-leach plant.

Fe Ltd and Big Yellow make plans to mine JWD iron ore project

Fe Limited says it has executed a letter of intent (LOI) with Big Yellow that could see the emerging company become the mining contractor for the JWD iron ore project in the Pilbara of Western Australia.

A full form contract is targeted to be completed within the next 30 days, subject to receipt of necessary environmental approvals and logistic contracts. This LOI, the company says, will enable Big Yellow to allocate the necessary mining fleet and people to the FEL project.

Big Yellow is a new contractor founded by mining executives Brad Gordon (former CEO of Acacia and Intrepid), David Edwards and Mitch Wallace (both ex MACA).

“FEL believes that Big Yellow’s combination of experienced personnel looking to replicate their past success in a new entity is a good fit with FEL’s own aspirations to do the same and looks forward to continuing to work together,” it said.

Following the LOI being executed by both parties, discussions have commenced on works that can be commenced in advance of final environmental approvals being received.

The approvals received to date allow certain clearing and preparatory works to occur at JWD, along with refurbishment of the existing office facilities on site. These early works will allow a faster ramp-up of operations once the remaining approvals and key contracts are secured, FEL claims.

FEL says it has revisited the JWD geological model and mine plan, with opportunities identified for a reduction in the strip ratio and an improved average iron ore head grade. If successfully implemented, this would have a positive impact on its margins through reduced mining costs and improved pricing as a result of higher-grade products than initially expected, it said.

FEL Executive Chairman, Tony Sage, said: “With mining at Wiluna close to commencing, we are pleased to have advised Big Yellow of our intention to appoint them as our mining contractor. We are well advanced with the final approvals and other key contracts and would anticipate being able to update shareholders on these shortly.”

In September, FEL acquired a 51% interest (including operatorship) in the Gold Valley Iron Ore Mining Rights Agreement over the Wiluna West JWD deposit. The JWD project is part of the wider Wiluna West project, owned by GWR Group. It came with a 10.7 Mt resource grading 63.7% Fe using a 55% Fe cutoff.

FEL classes the project as a low capex, direct shipping ore development, which will produce a high-grade (resource average circa-63.7% Fe), low impurity iron ore. A January 2021 presentation claimed the mining and transport of the first 300,000 t of iron ore is required by September under the iron rights agreement.

First Sanjiv Ridge iron ore shipment on its way, Atlas Iron says

Atlas Iron has hauled its first shipment of ore by road to Port Hedland, in Western Australia, from its new Sanjiv Ridge operation in four brand new pink trucks.

After announcing the first ore crushed earlier this month, the Hancock Prospecting owned company reached this new milestone this week.

Some 4-5 Mt/y of iron ore lump and fines is to be hauled by road to the Utah Point stockyard, which will add 5-6 years to the Atlas value chain, the company says. It comes with 64 Mt at 57.2% Fe of mineral resources and 29 Mt at 57% Fe reserves.

Sanjiv Manchanda, Atlas Iron CEO, said: “I’m so proud of our team of Atlas staff and our contracting partners, MGM Bulk, MACA and CSI for working so tirelessly to ensure we surpassed our project targets. It’s always a team effort, and our small team certainly knows how to get things done safely, efficiently and with agility to get a win-win outcome.

“I also take this opportunity to thank our partners MGM Bulk and CSI Mining (a Mineral Resources Ltd subsidiary) who painted their four brand new trucks and crusher, which were used today and for the duration of the project, a striking pink colour in recognition of our Group and Executive Chairman’s commitment to supporting breast cancer research and improving patient care. These pink trucks now add to a large amount of mining infrastructure in the Pilbara now pink, including trains, ships, processing plants, crushers and mining trucks.”

MACA extends contract mining relationship with Ramelius Resources

MACA says it has been awarded an open-pit mining contract from Ramelius Resources for load and haul, and drill and blast services at the Tampia gold project in Western Australia.

Tampia is near Narembeen, 250 km east of Perth, and 148 km by sealed roads from Ramelius’ Edna May gold mine where MACA currently provides contract mining services.

The contract is expected to generate A$95 million ($74 million) in revenue for MACA over a 28-month term, commencing in the June quarter, and will employ around 115 people. MACA says its work in hand position as of February 21 now stands at A$3.4 billion.

MACA’s CEO, Mike Sutton, said: “MACA is very pleased to be awarded this contract at the Tampia gold project, and values the long-standing relationship that we have established with Ramelius since commencing works on the Mt Magnet gold project in 2017, and then the Edna May gold project in 2020.”

The Tampia gold project, which Ramelius consolidated 100% ownership of earlier this year, was the subject of a feasibility study in April 2020. This study focused on the option to haul ore to Ramelius’ Edna May processing facility for production of 186,000 oz of gold from the processing of 2.5 Mt of ore.