Tag Archives: MacKellar Group

NACG’s MacKellar Group banks five-year met coal contract in Queensland

Coal technology, Mine operation news, Mining equipment, Mining services, , , , ,

North American Construction Group Ltd says the MacKellar Group has been awarded a five-year contract extension by a major metallurgical coal producer in relation to a mine in Queensland, Australia.

The contract contemplates the provision of fully maintained equipment and related services at the site operated by the producer.

The award extends the expiry date from June 6, 2025, to June 30, 2030, and qualifies as contractual backlog given minimum hour commitments in the agreement, NACG says. Rental scopes are estimated at C$100 million ($74 million) per year resulting in a total value from this extension of C$500 million, the company added.

The contract requires the addition of two loading units and one service truck, for between C$20 and C$25 million, which will be purchased by the end of the year and bring the total dedicated fleet at this site to approximately 70 heavy equipment units.

NACG acquired MacKellar in July 2023 for C$395 million.

Joe Lambert, President and CEO of NACG, said: “We are excited about this extension and look forward to continuing the relationship we have with our customer at this site. This is the first material contract we have signed in Australia since the acquisition of MacKellar and are very proud of how well the first five months have gone.

“MacKellar has provided an excellent platform to grow our business in Australia as we leverage our operational and maintenance expertise in the region. We believe this ‘locking in’ of fleet is indicative of the strong demand for heavy equipment in the Australian mining sector. In light of this demand, and bolstered by long-term contracts, we have begun to take steps towards prudently increasing fleet size in Australia, including potentially transferring underutilised Canadian fleet into that market with the goal of maximising overall utilisation.”

North American Construction to increase Australia contract mining exposure with MacKellar buy

Equipment maintenance, Mining equipment, Mining services, , , ,

North American Construction Group says it has entered into a definitive purchase and sale agreement to acquire MacKellar Group for an estimated C$395 million ($300 million).

MacKellar Group, with its heavy construction equipment fleet, is an Australia-based provider of heavy earthworks solutions to the mining and civil sectors, with a reputation derived from decades of reliable performance, NACG says. The transaction will significantly expand NACG’s capability and allow the company to serve a highly valuable and diversified base of customers globally, it added.

The transaction emerged through continued dialogue with MacKellar over the past two years, following NACG’s entry into Australia through the acquisition of DGI Trading Pty Limited in 2021. The acquisition of MacKellar is highly complementary to, and a natural strategic fit with, NACG given shared cultural alignment, focus on safety and operational similarities, NACG says. MacKellar will continue to operate and execute on its growth strategy, while delivering on its commitment of service to all its customers and partners.

MacKellar clients include Anglo American Australia at Dawson in Queensland and Bravus Mining and Resources, also in Queensland.

Joe Lambert, Chief Executive Officer of NACG, said: “NACG has built a strong relationship with MacKellar over the past two-plus years. Given the operational and cultural similarities that our companies share, this acquisition is a rare and attractive opportunity. Over the years, we have worked extremely hard to be part of the solution to help lower the operating costs of our customers through safe, efficient operation and maintenance of our equipment fleet. We are excited about partnering with MacKellar to serve our expanded customer base with the same innovations at a time when commodity producers are striving to maximise production and efficiency.”

Duncan MacKellar, Chairman of MacKellar Group, said: “Joining NACG offers a significant opportunity for both companies to share best practices and execute on our growth strategy. Our shared culture, highly skilled maintenance and operations teams, and now global operations will position us as a leader in heavy equipment fleet, allowing us to better serve customers across Australia.”

MacKellar Group adds approximately 450 mobile heavy equipment assets; 1,000 employees, including over 375 maintenance personnel; and 15 operating projects across a variety of service offerings including contract mining, civil earthworks, dry and maintained equipment rentals and component rebuilds to NACG. Its asset base is comprised of a well-maintained fleet operating at effective utilisation levels, it added.

NACG says MacKellar has strong growth prospects and a strong backlog, with operations in Western Australia and Queensland serving as a growth pillar given the large and diverse resource markets combined with a mining friendly jurisdiction. The combined company is expected to have over C$4 billion in contractual backlog by December 31, 2023, which will be the foundation to drive significant growth.

MacKellar Group adds to Liebherr T 264 haul truck fleet at Anglo’s Dawson mine

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MacKellar Mining has almost doubled the size of its Liebherr T 264 off-highway haul truck fleet at Anglo American’s majority-owned Dawson open-pit metallurgical coal mine in central Queensland, Australia.

The mining contractor has purchased another four Liebherr T 264 240 t trucks, adding to the fleet of five commissioned at Dawson in early 2020.

The four new T 264s, manufactured in Liebherr Newport News facility in Virginia, USA, will complete pre-assembly in Mackay before travelling inland to Dawson Mine for final commissioning, Liebherr said. The plan is for the trucks to join the working fleet in early 2021.

MacKellar Group said of the decision: “The T 264 provides efficient productivity for our clients by offering a true 240 metric tonne payload, and superior speed on grade. The many operator comforts also makes the trucks well accepted on site.”

The fleet of trucks at Dawson mine, owned 51% by Anglo American and 49% by Mitsui Holdings, are supported by Liebherr-Australia’s Mackay branch and on site Liebherr technicians, another area that assisted the purchase of the additional four units.

“Liebherr-Australia’s support has been excellent, starting from the beginning with the provision of professional operator training, through to support from their experienced technicians,” MacKellar Group concluded.