Mining contractor MACA has lost a key contract following Focus Minerals' decision to shutter operations at its Laverton project in WA, but the company says it will redeploy staff to other sites.
In a business update earlier this week MACA said it was disappointed by Focus's move to halt operations, but arrangements were already being made to redeploy resources.
“MACA operations at Laverton are currently single excavator only and arrangements will be made to redeploy resources to new MACA projects, where all of the MACA Laverton equipment and staff will be utilised,” the company said.
“Mining is expected to end late in May which provides adequate time for a planned transition of resources.”
Along with the shut-down at Laverton, MACA said it had recommenced operations at Rosslyn Hill Mining's Paroo Station Mine, and Sinosteel had also advised that delayed work at the Blue Hills iron ore project would recommence in the third quarter.
MACA said Atlas Iron had also flagged the intention of extending a contract for the Pardoo operations, which has been in place since 2009.
Overall MACA managing director Doug Grewar said despite the losses at Laverton the company was well placed for the future.
“Although we are disappointed that our long term engagement at Laverton is coming to an end, we are equally delighted that Sinosteel Midwest has made the decision to commence mining at the Blue Hills project, that operations have recommenced for Rosslyn Hill (formerly Magellan Metals) and that Atlas have advised us of their intention to formalise a contract extension at Pardoo,” he said.
“MACA operates with a prudent level of hired/subcontract services to minimise the impact of project changes. With long term contracts and a diversity of commodity and client exposure, MACA is well placed to maintain high levels of activity despite the current market volatility.
“The outlook remains strong and MACA retains the expectation that revenue will exceed $450 million for the 2013 financial year.”