Tag Archives: MLG Oz

MLG Oz’s integrated operating model to be tested at Gold Fields sites

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Gold Fields has formally awarded the provision of site services and haulage at its Granny Smith underground gold mine, and open-pit mining services at St Ives for the Swiftsure deposit, to MLG, the mining services provider says.

The letter of award from Gold Fields is subject to both parties reaching agreement on formal terms.

Along with these new opportunities, MLG has also successfully extended its contractual arrangements to support Gold Fields’ Agnew site in a planned cut back of its Barren Lands open pit.

The Granny Smith contract is for a three-year term with an option to extend for another two years, with the contract expected to contribute some A$9 million ($5.9 million) in additional revenue in MLG’s 2024 financial year.

The Swiftsure open-pit mining services at St Ives comes with projected revenue of circa-A$20 million, with the project comprising a single open-pit gold mine incorporating load and haul services. The initial project is expected to be completed in eight months, starting in January.

The planned cut-back of the Barren Lands open pit at Agnew involves supplying the necessary mining equipment to execute drill and blast and load and haul activities, with the works having commenced in November 2023 and expected to continue through to March 2024.

MLG founder, Managing Director and majority shareholder, Murray Leahy, said: “We are delighted to expand our integrated services model across Gold Fields’ portfolio and to bring our site services expertise to their Granny Smith operations. MLG can now provide a consistent approach across all of Gold Fields’ Australian mine sites. In addition, the award of the open-pit mining scope of works at the Swiftsure deposit at St Ives, and the extension of works at the Barren Lands open pit operation at Agnew, acknowledges the breadth of service and overall capabilities across MLG’s integrated operating model.”

MLG Oz set to work with Genesis Minerals in Leonora

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MLG Oz Limited has been awarded a contract to supply integrated site services and haulage works to Genesis Minerals Limited’s Leonora gold project in Western Australia.

The award is still subject to the final execution of contracts however the scope of works and commercial terms for the three-year agreement have been agreed. MLG will work closely with Genesis to support its strategic growth plans in the prolific Leonora District, playing a key role in delivering Genesis’ “right ores in the right mill” operating model, it says.

The contract is due to commence in November 2023 with ramp up of production to transition through 2024. Full year revenues in MLG Oz’s financial year 2025 are expected to be circa A$15 million ($9.6 million) growing to circa A$30 million in FY2026.

MLG founder, Managing Director and majority shareholder, Murray Leahy, said: “We are immensely excited about the opportunity to partner with Genesis and help support their strategic objectives in the Leonora district.

“MLG’s regional position across the Leonora mineral field and strength of our underlying operations across this region ensures we are well placed to grow with Genesis and help them execute on their long-term strategy.”

“We are delighted to be welcoming Genesis as a new strategically important customer through the award of this contract allowing MLG to play a major role in the enhancement and growth of mineral production in the Leonora region. The Leonora Mineral field is currently going through a level of consolidation and growth in processing capacity not experienced before. MLG’s large regional presence and scale of support infrastructure located within the region that is currently delivering for our high-quality customer base positions us extremely well to capitalise on these opportunities.”

MLG is already interacting with Genesis as part of a haulage services contract with Bellevue Gold which involves processing Bellevue’s open pit material at Genesis’s Gwalia processing facility.

MLG Oz makes contract inroads with Ora Banda, Gold Fields, Bellevue Gold

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MLG Oz says it has been selected as the preferred supplier for the provision of haulage and site services at Ora Banda Mining’s Davyhurst site, in Western Australia, on top of receiving a letter of award from Gold Fields for the provision of construction works for the latest tailings storage facility project at the gold miner’s 50% owned Gruyere gold mine (pictured), also in Western Australia.

The company is currently finalising contract execution for a two-year extension, plus a one-year option, to its existing arrangements for the provision of services at Davyhurst. It would come with new commercial terms across the scope of works already being provided negotiated in line with current cost drivers and production expectations, with annual revenue subject to production and performance anticipated to be
approximately A$15 million/y ($10.2 million). This is subject to a contract being signed.

Ora Banda Mining owns an existing centralised 1.2 Mt/y processing hub, as well as additional established infrastructure at Davyhurst.

The letter of award with Gold Fields, meanwhile, is for the provision of construction works for the Gruyere Tailings Storage Facility Stage 4 (TSF) project at the gold mine, a joint venture between Gold Fields and Gold Road Resources. The award is still subject to the final negotiation of contract terms. The anticipated contract length is around eight months, with total revenue of approximately A$17 million subject to final terms and key milestones being achieved.

In addition to this new scope of works, MLG has also agreed to commence haulage services for Bellevue Gold from its open pit to Genesis’s Gwalia processing facility, also in Western Australia. The initial works are expected to commence this month and run for approximately three
months and contribute circa-A$4 million in revenue.

MLG founder, Managing Director and majority shareholder, Murray Leahy, said: “We are very pleased to be able to extend our relationship with Ora Banda Mining and to be able to continue to support their Davyhurst operation under mutually agreed terms. The extension of this contract and the award of the new contracts with Gold Fields and Bellevue Gold are evidence of our strong client relationships, and further demonstrate MLG’s broad capability both in terms of haulage and site services, but also in the support for our growing civil construction business.”

Westgold signs up MLG for transport, maintenance and management services

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MLG Oz Limited says it has been awarded a material five-year contract by Westgold Resources Limited that will see the METS company service the gold miner’s operational hubs across the Murchison and Bryah Basin regions.

The contract, which leverages MLG’s integrated support model, is focused on enhancing Westgold’s operating efficiencies. It also consolidates MLG’s resources in the Mid-West region and represents a material win for the company, it said.

Westgold owns and operates the Tuckabianna, Bluebird and Fortnum processing hubs across the Murchison and Bryah Basin regions of Western Australia, with its objective to leverage MLG’s existing fleet capacity to enhance operational efficiencies and use MLG’s latest road haulage technical advancements, MLG said.

Westgold is to provide dedicated maintenance facilities at each of its sites to support MLG operations.

The scope of services includes the delivery of in-pit, off- and on-road haulage, road maintenance and run of mine management services activities across all of Westgold’s operations.

The initial ramp up and mobilisation activities are expected to commence in October 2022, with anticipated annual revenues of circa-A$40 million ($27 million) with revenue to build from December 2022.

MLG founder, Managing Director and majority shareholder, Murray Leahy, said: “We are delighted Westgold has selected us to enhance their operations in the Murchison and Bryah Basin regions. Westgold is focused on driving cost and operational efficiencies to enhance the profitability of its business and we are proud to have been chosen as a key and trusted business partner.

“This is a large opportunity for MLG to establish a long-term relationship with a growth-oriented gold miner and Westgold’s faith in MLG represents a significant endorsement of our capabilities.”

MLG Oz is a founder-led business that provides a range of services to mine sites, integrated around the needs of client’s ore processing facilities.

MLG Oz bolsters NSR Jundee work, adds Norton Gold Fields and Mincor to contract mix

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MLG Oz says it continues to experience historically high levels of tendering opportunities for its suite of mining services, with three new integrated site services and haulage contracts recently added to its remit across its Western Australia operations.

MLG, which listed on the ASX earlier this year, says it offers a range of value added services from bulk haulage, crushing and screening, aggregate and sand supplies through to export logistics.

At Northern Star’s Jundee gold operation in Western Australia, the company has been awarded preferred contractor status for an expansion of its services, providing integrated site support and haulage capacity at the mine. Subject to negotiation and execution, this new three-year contract is expected to commence around August and deliver some A$12 million/y ($9.2 million/y) in revenue.

The scope of works will consist of integrated site support to the company’s mill feed operations from both its Jundee central underground mines and its regional satellite operations, MLG said. It will see the ASX-listed contractor conduct all crusher feed, bulk haulage and site civil works for the operations under its integrated operating platform.

MLG has added two new clients to its roster, too – Norton Gold Fields and Mincor Resources.

Norton Gold Fields has chosen MLG as its successful tenderer to provide integrated site support services and haulage for its Paddington gold operation over a three-year period expected to commence in September. Revenue from this opportunity is estimated to be around A$14 million/y, with formal contract documentation anticipated to be finalised in the coming weeks.

And, in line with MLG’s desire to broaden its service offering across different commodities and, in particular, the battery metals space, it has executed a contract with Mincor Resources for the provision of the logistics services associated with its Kambalda nickel operation. The contract is expected to deliver approximately A$3 million/y in revenue over four years and is expected to commence in the March quarter of 2022.

Reviewing these contract awards, MLG Founder, Managing Director and majority shareholder, Murray Leahy, said: “We are very pleased to be given the opportunity to continue to support and grow with Northern Star which has been a long-standing customer of MLG.

“We are delighted that the Norton Gold Fields Board has selected MLG to support the Paddington processing facility. The mill is 35 km northwest of Kalgoorlie and aligns very strongly with our existing Kalgoorlie network.

“Our new contract at the Kambalda operations is an important first step for MLG in developing a longer-term relationship with Mincor in support of its goal of being a key supplier of nickel to the emerging battery metals market.”

In addition to announcing these contract awards, MLG also provided a market update on its crushing and screening activities.

It said: “MLG’s crushing and screening operations, which account for 20% of MLG’s forecast financial year 2021 revenue of A$241.6 million, have experienced a reduction in available material to process from several clients across the last quarter of financial year 2021, due to production constraints at various client operations. We anticipate this will negatively impact the crushing and screening revenue in the first half of financial year 2022. Despite this, and given the company’s current pipeline, including as evidenced above, the board expects the overall impact of this to be mitigated in the second half of financial year 2022.”