Tag Archives: MACA

MACA eyes up Downer’s Open Cut Mining West division

Mining mergers and acquisitions, Mining services, , , , , ,

MACA Ltd, in response to recent media speculation, says it is currently considering the potential purchase of Downer EDI Limited’s Mining West division.

The contractor says such a move for the open-pit mining business is consistent with statements made at its Annual General Meeting in November 2020, which outlined that it continued to explore and pursue growth opportunities that will deliver “value to shareholders on an ongoing basis”. This exploration, it said, may include investments in new businesses or acquisitions where considered appropriate.

MACA added: “The process is ongoing and MACA would only pursue a binding offer to acquire the business if it were to align with its strategy and deliver value for the company’s shareholders.”

Downer has previously announced it is seeking expressions of interest in the various parts of its portfolio of mining businesses.

It has already announced the sale of Downer Blasting Services, the Snowden consulting business and its share of the RTL Mining and Earthworks joint venture, while also stating the company is in active discussions with several interested parties in relation to the rest of its mining portfolio.

Capricorn Metals moves into final development stretch at Karlawinda gold project

Comminution of minerals, Mineral processing, Mineral project development, Mining equipment, Mining services, Power supply for mines, Precious metals, , , , , , , , , ,

Capricorn Metals has confirmed Way Electrical Pty Ltd will carry out the plant electrical installation at its Karlawinda gold project (KGP) in Western Australia following a competitive pricing process.

The contract is in the order of A$5 million ($3.6 million) and is in line with Capricorn’s budget estimate, it said.

This is the final significant construction contract for the build of the processing plant at Karlawinda.

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 use a 3.5-4.0 Mt/y carbon-in-leach processing plant.

Development of the project is underway, with commissioning expected in the March quarter of 2021.

Alongside this contract award, the company said the manufacture of the ball mill for the KGP had been completed by CITIC in Luo Yang, China.

The mill components have been subjected to and passed all the required manufacture quality control inspections, and tests and are now in various stages of despatch for shipping to Australia, it explained.

With the major (and oversize) components due for departure on November 21, the estimated arrival in Port Hedland is December 10, allowing for the oversize mill components to get to the KGP by mid-December.

In addition to this, the steel pipe for the 40 km of lateral gas pipeline from the Goldfields Gas Pipeline (GGP) to the KGP power station arrived in Fremantle from Korea and has been delivered to site.

APA, the build-own-operator of the pipeline, has (in consultation with Capricorn) awarded the pipeline construction contract to McConnell Dowell, which is currently mobilising to site with a view to commencing construction in December 2020.

Once operational, the lateral pipeline from the GGP to KGP will transport around 3 Tj/d of gas for power generation at KGP.

The KGP power supplier, Contract Power Australia, has progressed fabrication of the power station building at the project, with the eight Cummins HSK78G, 2 MW gas generator units in transit from the US with expected delivery to the KGP site in early February 2021.

Lastly, the KGP open-pit earthmoving contractor, MACA, has commenced mobilising mining equipment to site. Early preparatory works have commenced including haul road construction and limited waste mining mostly to provide materials for surface water bunds and tailings storage facility construction.

The first waste rock blast of material in the Bibra stage 1 pit has been fired successfully, Capricorn said.

MACA to get mining Fenix Resources’ Iron Ridge project

Mineral project development, Mining services, Steel and iron ore, , , , , , , ,

Fenix Resources has awarded the drill & blast, mining, and crushing & screening contract for its Iron Ridge project, in Western Australia, to MACA Ltd.

MACA is a reputable contractor with a strong track record of operational experience in the mining sector and has been involved in the Australia iron ore industry having carried out long-term works for Atlas Iron Ltd and Crossland Resources, Fenix said.

Early stage works commenced last month through local contractors, with MACA currently mobilising heavy earthmoving equipment to site.

Open-pit mining and crushing and screening operations are due to commence in the current quarter.

MACA said the contract is expected to generate around A$185 million ($131 million) in revenue for it over the 75-month term.

Fenix Managing Director, Rob Brierley, said: “We having been interacting with MACA on all aspects associated with the Iron Ridge project for well over a year now, and we are pleased that this relationship will continue as we transition to production in the near-term.

“MACA has vast experience in all aspects of iron ore mining operations and has essentially offered Fenix a one-stop shop for all our service requirements leading up to the transport of the ore from site to the port of Geraldton.”

The terms of the contract are in line with the company’s feasibility study, announced on November 4, 2019, which outlined that circa-8 million tonnes of high-grade hematite grading some 64% Fe will be extracted over a 6.5 year life of mine.

This same study assumed a single open-pit operation using conventional excavator‐truck mining fleet, adopting 10 m benches and mining these benches in three flitches. Ore and waste would be hauled to the run of mine pad and waste dump, respectively, by a fleet of 100 t haul trucks, while drill and blast will be conducted using a top hammer drill rig and ANFO or heavy ANFO explosives.

MACA wins three-year contract extension at Ramelius’ Mt Magnet gold mine

Mine operation news, Mining equipment, Mining services, Precious metals, , , , , , , ,

Contract miner MACA has been given an extension to its contract at Ramelius Resources’ Mt Magnet gold mine, with the ASX-listed company set to continue providing mining services at the Western Australia operation for another three years.

The project extension will consist of open-pit mining services including drilling and blasting, and loading and hauling, MACA said.

It is expected the project extension will generate approximately A$130 million ($93 million) in revenue for MACA over the three-year term.

MACA says its total work in hand position now stands at a healthy A$2.3 billion.

Mike Sutton, MACA CEO and Managing Director, said: “We are pleased to continue our relationship with Ramelius Resources at Mt Magnet for a further three years. The services we provide at Mt Magnet and Edna May for Ramelius make up an important part of MACA’s work in hand in the gold sector.”

MACA to become contract miner at Atlas Iron’s Corunna Downs mine

Mineral project development, Mining services, Steel and iron ore, , , , , , , ,

MACA is to carry out open-pit mining at the Corunna Downs iron ore project in the Pilbara of Western Australia following a contract award from owner Atlas Iron.

The contract follows an agreement between the two to upgrade an existing public road and develop an access road at Corunna Downs, announced earlier this year.

The project, some 33 km south of Marble Bar in the Pilbara, 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 will carry out the drilling and blasting, and loading and hauling as part of the new pact, which is expected to generate around A$230 million ($159 million) in revenue for MACA over the 62-month term.

MACA says it has a long-standing working relationship with Atlas having previously provided services at the Pardoo, Mt Dove, Abydos and Wodgina iron ore operations. It is also currently providing crushing services for Atlas at its Mount Webber iron ore mine on top of the civil works at Corunna Downs.

The contractor’s total work in hand position now stands at A$2.2 billion, it said.

MACA CEO, Mike Sutton, said: “We are pleased to have been selected as the contract miner for Atlas building on our workload in the iron ore sector with an existing client. We look forward to being part of the successful development of this project.”

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

Mineral project development, Mining maintenance, Mining services, Steel and iron ore, , , , , , , , ,

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

Explosives and blasting, Mineral project development, Mining equipment, Mining project news, Mining services, Precious metals, , , , , ,

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

Base metals, Mine operation news, Mining equipment, Mining services, , , , , , ,

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

Base metals, Mine operation news, Mineral project development, Mining services, , , , , , ,

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

Mineral project development, Mining services, Steel and iron ore, , , , , ,

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.