Big win for MACA

MACA has won a coal contract worth around A$700 million over 10 years.
Big win for MACA Big win for MACA Big win for MACA Big win for MACA Big win for MACA

Staff reporter

The contractor was awarded the work by Carabella Resources for its Bluff coal project near Blackwater in Queensland's Bowen Basin.

The contract comprises all open pit services, including planning, procurement, management and supervision, load and haul, drill and blast, and water management over the life of the mine.

Bluff will produce around 12 million tonnes of a pulverised coal injection product (PCI) for steel-making.

The coal will be processed via Bounty Mining's Cook colliery.

MACA will finance the drop cut to first coal and other minor project works via a secured working capital facility of up to $25 million.

To ensure the project's capital remains within MACA's normal capital parameters the project will utilise both acquired and hired equipment with capital expenditure of approximately $45million.

Contract works will begin in the second quarter of FY19 and first coal is expected to be produced in the third quarter of FY19.

"The project will be an ‘alliance' style contract aimed at delivering the lowest possible cost to our client," MACA said.

The company said the contract would broaden its commodity exposure and geographical footprint, as well as use larger fleet classes including 350t class excavators and 220t and 180t class dump-trucks.

The contract takes MACA's work in hand position to $1.982 billion.

MACA reaffirmed its recent full-year revenue guidance of around $620 million.

Despite the win, MACA shares closed 3% lower at $1.285.