Tag Archives: MACA

MACA wins early civil works contract at Atlas Iron Corunna Downs project

MACA is to upgrade an existing public road and develop access road at the Corunna Downs iron ore project following a contract award from Atlas Iron.

The project, 33 km south of Marble Bar in the Pilbara region of Western Australia, will see Atlas develop five open pits using conventional drill and blast, and load and haul methods. Some 23.3 Mt of iron ore will be mined above the water table over an approximate timeframe of six years, according to a filing with the Environmental Protection Authority.

MACA’s contract is expected to generate revenue of around A$38 million ($23 million) over the eight-month term of the project. This includes the upgrade of a 22 km section of public road and the development of 13 km of access road. At its peak, the project will employ around 80 people, according to MACA.

The project is expected to commence in the June quarter for completion this year.

MACA has a long-standing working relationship with Atlas having previously provided services at the Pardoo, Mt Dove, Abydos and Wodgina operations. It is currently providing crushing services for Atlas at its Mount Webber operations.

MACA CEO, Mike Sutton, said: “MACA is delighted to have been awarded these early civil works for Atlas demonstrating the civil capability within our end to end mining service offering. We look forward to being part of the successful development of Corunna Downs and continuing our long-standing relationship with Atlas.”

Separately, MACA also advises it has received notice of a 12-month extension to its Eastern Ridge mobile crushing contract for BHP extending the project to April 2021.

MACA to mobilise to Okvau gold project in August

More than a year after signing a memorandum of understanding (MoU) with a subsidiary of Emerald Resources to supply equipment and contract mining services at the Okvau gold project in Cambodia, MACA has been confirmed as the mining contractor.

As part of the new agreement, ASX-listed MACA is to supply earthmoving equipment and conduct contract mining services at Okvau.

Emerald said: “The signing of the mining contract follows extensive work with MACA around scheduling of pre-production and production mining.”

The company added: “It represents a positive step in the development of the Okvau gold project by adding a high level of confidence in the execution of the mining schedule with the highly experienced MACA earthmoving team.”

The contract provides for the use of new fit for purpose earthmoving equipment with an onsite expatriate management team experienced in similar international operations, according to Emerald.

MACA’s proposed scope of work includes site preparation, drill and blast, load and haul and maintenance works. This equates to around $230 million in revenue over the seven-year term.

Mobilisation activities are expected to commence in August ahead of pre-production mining in October 2020. First gold is expected in the June quarter of 2021.

Last month, Outotec booked a €13 million ($14.2 million) order from the project, with the Finland-based company set to deliver an Outotec HIGmill® high intensity grinding mill, a SAG mill, TankCell® flotation cells, an OKTOP® Conditioner, thickeners and spare parts to the project.

Emerald Managing Director, Morgan Hart, said: “We are extremely pleased to have appointed MACA as the mining contractor for the Okvau gold project operations which continues the existing relationship between the Emerald and MACA management teams. The signing of the Mining Contract follows a thorough and collaborative process with both teams in finalising the mining schedule for the development and operations of the Okvau gold project.”

He said the sealing of this contract gave the company “greater confidence” to achieve its goal of becoming the first modern large-scale Cambodian gold producer by the June quarter of 2021.

A definitive feasibility study on the project displayed an ore reserve of 14.3 Mt at 2 g/t Au for 900,000 oz of gold in a single open pit with a waste:ore ratio of 5.8:1. The life of mine average annual production came in at 106,000 oz with an all-in sustaining cost of $754/oz.

MACA exits Brazil, prepares for more FQM Ravensthorpe work

Contract miner, MACA Ltd, says it will cease operations in Brazil, effective January 2020, following the early termination of a contract at the Antas copper mine.

The contract, due to conclude in 2020, was with AVB Mineracao Ltda, a subsidiary of OZ Minerals, which announced back in mid-2019 that it planned to close the Antas open pit (pictured) in 2021. The reduction in the work in hand (WIH) position as a result of the early termination will be around A$8 million ($5.5 million), the company said.

At the same time as announcing this news, MACA said its mining division had received a letter of intent (LOI) from First Quantum Minerals to carry out works at the Tamarine limestone quarry, in Western Australia, including mining, crushing and screening of limestone over a three-year period. This contract was worth around A$20 million over that timeframe, MACA said.

The LOI follows the Ravensthorpe contract award with First Quantum that was announced November 20, 2019. MACA said works were expected to start in February utilising existing crushing equipment.

In Brazil, MACA said it would retain ownership of the majority of the plant and equipment currently utilised at the Antas copper mine, in Para state, northern Brazil, and would dispose of assets that are not redeployed to other operations.

“It is expected there will be a non-cash impairment related to the cessation of operations in Brazil of approximately A$2 million,” MACA said. “In addition, there are unrealised forex losses that will be triggered upon closure of the subsidiary, of approximately A$5 million based on current exchange rates.”

Profit from ordinary operations was not expected to be impacted as a result of the closure given the recent financial performance of the contract, MACA added.

WIH attributable to MACA as at January 31, 2020 is expected to be A$2.3 billion across all business units, MACA said, with current guidance for financial year 2020 (to end-June) remaining at A$770 million revenue and EBITDA from operations (excluding the impact of the Antas impairment and forex losses) to be in a range of A$104-$110 million.

MACA to help FQM with Ravensthorpe nickel mine restart

MACA says it has received a letter of award from First Quantum Minerals related to carrying out open-pit mining services at the Ravensthorpe nickel project in Western Australia.

On care and maintenance since October 1, 2017, due to the persistently low nickel price, Ravensthorpe involves open-pit mining and beneficiation of nickel laterite ore, pressure acid leaching, atmospheric leaching, counter current decantation, precipitation and filtration to produce a mixed hydroxide precipitate product, containing approximately 40% nickel and 1.4% cobalt on a dry basis.

First Quantum hinted earlier this year that a restart could be on the cards following a sustained nickel price run. Restart costs, should favourable conditions prevail, are estimated at $10 million, the company has previously said.

The final contract award with MACA is subject to finalisation of documentation with all major terms having been agreed, the ASX-listed contractor said.

Mobilisation to site is expected to commence in December with operations commencing from January.

The project will consist of open-pit mining services including drilling and blasting, and loading and hauling, and is expected to generate around A$480 million ($327 million) in revenue for MACA over the initial five-year term.

MACA said its total work in hand position now stands at A$2.5 billion and its financial year 2020 revenue is expected to be around A$770 million.

MACA Operations Director, Geoff Baker, said: “We are very pleased to have been selected preferred contractor and look forward to developing a long-term working relationship with the First Quantum team at the Ravensthorpe nickel project.”

MACA on the road again at Iron Bridge magnetite project

MACA says it has been awarded a bulk earthworks contract at the Iron Bridge magnetite project, a joint venture development in the Pilbara of Western Australia between Fortescue Metals and Formosa Steel IB.

The contract is for access roads and infrastructure at the $2.6 billion project, 145 km south of Port Hedland.

MACA said this work is expected to generate revenue of A$26 million ($17.6 million) for the company, with the scope including general earthworks for camp expansion, construction of 26 km of mine access road, construction of the explosive facility and access road, and a further 23 km of road upgrade works.

MACA, which has already started work on the contract, becomes the latest mining equipment, technology and services contract to find work at Iron Bridge, which is expected to deliver 22 Mt/y of high-grade 67% Fe concentrate production following start up in 2022.

Just last month, Weir Minerals was awarded its largest ever individual mining order from the project.


Queensland’s first Cat MD6250 drill delivered to Bluff coal mine

In what Hastings Deering says is a first for Queensland, a Caterpillar MD6250 rotary blasthole drill has been delivered to contractor Mining and Civil Australia (MACA).

The delivery to Bluff coal mine, east of Blackwater, is the first drill of its kind to enter the territory for works in the open-pit coking coal operation and was done with precise logistical planning, according to the Cat dealer.

Commencing its journey in Caterpillar’s Denison factory in Texas, US, the MD6250 was transported in components to Brisbane where it launched a 615-km journey by road to Rockhampton.

The transportation of the machine was done across three trucks, including two large prime movers to haul the chassis and mast, as well as a smaller truck to transport the smaller accessories and parts.

In Queensland, heavy vehicles and road trains are restricted to 80 km/h speed due to safety regulations, with the journey from Brisbane to Rockhampton taking two days to complete.

“The MD6250 doesn’t have the size of footprint of an off-highway haul truck, for example, but it is still big enough that we required a pilot vehicle and police escort to make the journey safely,” Adam Davis, Product Manager for Drills and Large Motor Graders at Hastings Deering, said.

Once the components were delivered, Hastings Deering’s team of engineers set aside a week to assemble the drill before delivery to the Bluff mine site to the west of the city.

Thanks to a 10-year contract with Carabella Resources (now owned by Wealth Mining), MACA manages both the drill-and-blast and load-and-haul operations at the Bluff mine, in what was a A$700 million ($487 million) deal for the company.

The advanced features on the crawler-mounted Cat MD6250 drill are set to maximise fuel efficiency and improve drilling for the contractor, Hastings Deering says. Its features include a Cat C27 engine, variable compressor output controls, drill depth indicators and virtual head stops for operators.

The drill is likely to offer far more than just the expected productivity benefits at Bluff, though.

Davis explained: “It’s an interesting site as there are restrictions around noise. MACA had experience with the MD6250’s predecessor model and believed they could get the same value and production out of the new model.

“The MD6250 has proportional hydraulics, which means the machine makes less noise during operation and the fan circuit only operates when it needs to. The machine only creates horsepower when needed, which cuts down on heat, noise and energy.”

Davis says the mine’s purchase of the MD6250 drill is in line with an industry trend towards using high-tech, mid-size drills suited to drilling holes smaller than the 270 mm sizes.

The MD6250 is equipped with a hole diameter range of between 152–250 mm.

“In places like the Hunter Valley, in New South Wales, it’s the norm to go for mid-size machines with this kind of technology, and it’s possible that this could also happen in Queensland in the future,” Davis said. “Once the larger coal seams begin to shrink in size and the work moves to higher-grade coal seams, smaller machines are used as they are better suited to such applications.”

MACA drafts up mining contract for Okvau gold project in Cambodia

ASX-listed MACA has entered into a memorandum of understanding (MoU) with a subsidiary of Emerald Resources to supply equipment and contract mining services at the Okvau gold project in Cambodia.

The MoU with Renaissance Minerals is subject to a final investment decision to develop the project by the Emerald Resources Board of Directors, MACA noted. A draft mining contract between MACA and Emerald, agreeing on all material terms, conditions, schedules and rates, will be executed upon this decision.

MACA’s proposed scope of work under the mining contract includes load, haul, drill and blast utilising 100-t class dump trucks, with the initial term of the contract aligned to the current schedule of seven years with an option to extend. This equates to around $220 million in revenue, MACA said.

MACA Managing Director, Chris Tuckwell, said MACA will use the experience it gained in establishing both a foreign subsidiary and starting a new mine whilst working in Brazil over the last four years to Renaissance’s Cambodia project.

Emerald Resources’ Managing Director, Morgan Hart, said: “The board and management of Emerald have worked closely with the team at MACA over the past 20 years in a multitude of successful operations and are very pleased to continue the relationship on the Okvau gold mine development.”

On 1 May 2017, Renaissance announced the completion of the definitive feasibility study (DFS) on the development of a 2 Mt/y operation at Okvau. The DFS delivered an initial ore reserve of 14.3 Mt at 2 g/t Au for 907,000 oz of gold at an average all-in sustaining cost of $731/oz over an initial seven year life of mine.

Gold Road and Gold Fields Gruyere JV on track for June quarter pour

Gold Road Resources and Gold Fields’ jointly-owned Gruyere gold project in Western Australia is on track to pour first gold in the June quarter, the companies said in a construction and commissioning update this week.

Construction of the project, around 200 km east of Laverton in WA, was 91.2% complete as of January 18, 2019, with first ore mined on schedule this month. Downer, the mining contractor, has commenced double‐shift operations as part of the production ramp‐up, the companies said.

Gruyere is expected to produce 85,000-120,000 oz of gold in 2019. Once steady state production is achieved, the average annual production is forecast at 300,000 oz.

To de‐risk the project start‐up, a significant amount of ore is expected to be stockpiled in advance of first gold production, the companies noted, adding that construction works in the primary crusher area were substantially complete. Ore commissioning of the primary crusher to coarse ore stockpile circuit is in progress, they said.

The remaining process plant construction works are concentrated in the milling, carbon-in-leach and elution areas, and include piping, electrical and instrumentation installations and progressive commissioning of systems and equipment through these areas.

The project team at Gruyere includes a joint venture EPC contractor, Amec Foster Wheeler Civmec Joint Venture, MACA Ltd, which is carrying out bulk earthworks at Gruyere, and Downer EDI, which was previously awarded a five-year mining services contract.

Gold Road and Gold Fields said the project remained on schedule for first gold production in the June quarter and within previously announced forecast total cost estimates of A$621 million ($445 million).

MACA to refurbish Adaman’s Kirkalocka gold project in Western Australia

Contractor MACA has wrapped up a strong year with a contract award from Adaman Resources at its Kirklalocka gold project near Mt Magnet in Western Australia.

The contract, secured through its subsidiary MACA Interquip, includes installation of a new SAG mill and refurbishment of an existing mineral processing plant at Kirkalocka. MACA expects to book some A$28 million ($20.2 million) for the works, which will commence in February with a duration of eight months. Some 40 personnel are expected to be required.

MACA said the contract award follows early involvement with the Adaman management team, enabling advancement in the design process and the submission of long-lead items. Commencement of the project remains subject to finalisation of Adaman’s project finance documentation.

Operations Director Geoff Baker said MACA Interquip has an excellent record of successful refurbishment delivery, hence the contract award.

“Our alliance with NCP International, who manufacture grinding mills and install complete comminution circuits globally, as an installation partner, will provide MACA Interquip with further exposure as an integrated mineral processing supplier,” he said.

“The recent contract awards for MACA Interquip demonstrates the success of the MACA strategy to diversify its services within the resource industry.”

This new contract ensures a strong order book for MACA Interquip for 2019 when added to the letter of intent for the refurbishment of the gold processing plant for Echo Resources. Other recent and ongoing work on processing plants includes the Savannah nickel project for Panoramic Resources (pictured) and the Degrussa copper project for Sandfire Resources.

Back in October, SMS Mining Services, which owns a 33% stake in Adaman, secured preferred contractor status for Kirkalocka, with the four-year contract consisting of open-pit mining services including load and haul, drill and blast, and mine development. SMS said at the time drilling was underway to extend the mine life beyond the current six years.

MACA set for open-pit mining and process plant work at Echo’s Yandal gold project

Two of MACA Limited’s subsidiaries look set to carry out open-pit mining and refurbish the mill at Echo Resources’ Yandal gold project in Western Australia.

MACA said a letter of intent (LoI) had been signed that could see MACA Mining awarded an open-pit mining services contract and MACA Interquip receive a mill refurbishment contract.

These two contracts hinge on the Echo Board of Directors proceeding with an investment to develop Yandal and the project receiving all statutory approvals.

The scope of work to be undertaken under the mining contract will include load and haul, and drill and blast, with the pricing of the agreement to be updated (using the same inputs as tendered, adjusted for rise and fall) based on the final Yandal mine plans from a bankable feasibility study (BFS).

The mill contract is to include refurbishment and commissioning. MACA said: “While final pricing is to be determined under the aforementioned methodology, the previously released BFS for Stage 1 estimated mining costs at A$172 million ($124 million).”

Yandal, located 83 km northeast of Leinster in Western Australia, will treat ore through the 2 Mt/y Bronzewing processing plant (pictured), which is currently on care and maintenance. The project has existing mineral resources of 1.7 Moz of gold and ore reserves of 856,000 oz. The previously released BFS for Stage 1 envisaged the development of an 1.8 Mt/y operation able to produce 746,000 oz of gold over an eight-and-a-half-year life.

In addition to this LoI, MACA said, following mobilisation and early site establishment activities at the Bluff coal project in Queensland, Australia, mining of overburden would commence on or around December 10. MACA was previously awarded a A$700 million life of mine contract at Bluff from Wealth Mining.