WA-BASED contractor MACA has won a $700 million ‘life of mine’ contract with Wealth Mining’s Carabella Resources at the Bluff Coal project in QLD.
Under the 10-year contract, MACA will undertake open pit mining activities including planning, procurement, management and supervision, load and haul, drill and blast, and water management.
Bluff was expected to produce about 12 million tonnes of a pulverized coal injection (PCI) product, used as a raw material in steel making.
Work was expected to begin in the second quarter of the FY19, with first coal production scheduled in the third quarter of FY19.
The project would be an ‘ alliance’ style contract and employ about 140 people.
MACA said it would finance the drop cut to first coal and other minor project works via a secured working capital facility of up to $25 million.
The contractor will use both acquired and hired equipment with capital expenditure of about $45 million.
“The project will broaden MACA’s commodity exposure and geographical footprint. It will also utilise larger fleet classes including 350t class excavators and 220t and 180t class dump-trucks,” MACA said in a statement.
“The contract takes MACA’s WIH position to $1.982b and the company reaffirms the revenue guidance of approximately $620m.”
Last month, MACA reported a 26 per cent decline in net profit to $23.6 million for the 2018 financial year, impacted by poor weather conditions across its WA operations.
Image:MACA. MACA has won a 10 year contract to operate the Bluff Coal mine.