Bright future ahead for MLG mining services

Gold mine

MLG has revealed contract opportunities worth $29 million per year, headlined by being awarded preferred contractor status for Northern Star Resources’ expansion of the Jundee gold operation in Western Australia.

The three-year extension to its Northern Star contract will see MLG provide integrated site support at Jundee’s mill feed operations, plus all crusher feed, bulk haulage and site civil works.

Northern Star will pay $36 million to MLG over the contract term as the mining giant yields around 1.8 million tonnes from the operation.

MLG managing director Murray Leahy said the partnership with Northern Star was a strong and long-term one.

“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,” Leahy said.

MLG has also added Norton Gold Fields to its tender pipeline, earning the company approximately $14 million per year for three years as it provides integrated site support and haulage services.

“We are delighted that the Norton Gold Fields board has selected MLG to support the Paddington processing facility. The Mill is 35 kilometres north-west of Kalgoorlie and aligns very strongly with our existing Kalgoorlie network,” Leahy said.

After MLG listed on the ASX in late-April, the Kalgoorlie-based mining services provider has said it remains materially in line with its forecast revenue of $241 million for the 2021 financial year.

Adding a third contract to its strong order book, MLG will provide Mincor Resources with haulage logistics services for the Kambalda nickel operation.

The Mincor contract will look to broaden MLG’s services across commodities, especially in the battery metals space.

Mincor will afford MLG $3 million per year for four years, once the contract commences in the first quarter of 2022.

“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,” Leahy said.

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