MACA and Beadell Resources terminate Tucano contract

The Tucano mine. Image: Beadell Resources

Beadell Resources has ended its mining services contract with MACA at the Tucano open pit gold project in Brazil. The companies made the mutual decision to terminate operations yesterday, setting out a payment plan for Beadell to return outstanding amounts to MACA as a consolidated loan worth around $61 million plus interest, with the sum to be secured against Beadell’s assets.

MACA will also retain ownership of the majority of plant and equipment at Tucano and will attempt to send as many workers as it can to other sites in Brazil and Australia. Mining is expected to continue at the mine via a combination of Beadell and a single Brazilian contractor as part of an attempt by the former to streamline operations. The contract was originally set to expire in November 2019.

Simon Jackson, Beadell chief executive officer and managing director, called it a “significant step forward” for the mine as the company continued to focused on cost reduction and operational efficiency plans.

“A large, single, Brazilan-based mining contractor is the most sensible and practical way forward for the mine,” he continued. “We appreciate MACA’s willingness to work with us to come to a resolution on the best path forward for Beadell and we wish them the best in their future projects.”

 

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