MLG Oz scoops up $36 million in mining services contracts

Mining services provider MLG Oz (ASX:MLG) has secured contracts valued at around $36 million to conduct haulage and construction work for 3 ASX-listed gold miners in Western Australia.

The company reports it has been selected as the preferred supplier for haulage and site services at Ora Banda Mining’s (ASX:OBM) Davyhurst Gold Project.

MLG is finalising a contract for a 2-year extension plus the option for an additional year to its existing arrangements to provide services at Davyhurst. This contract is expected to provide a total revenue of $15 million once final terms and key milestones are achieved.

The company has also received a letter of award from South African gold miner Gold Fields (JSE:GFI) to construct a stage four tailings storage facility at the Gruyere Gold Mine in Western Australia, which is a joint venture (JV) between Gold Fields and Perth-based Gold Road Resources (ASX:GOR). 

The total revenue for this contract is estimated to be $17 million, and the company notes the award is subject to the negotiation of the final contract terms. 

In addition to this new scope of works, MLG has also agreed to begin haulage services for Bellevue Gold (ASX:BGL), under which it will haul open-pit material from the Bellevue Gold Mine to Genesis Minerals’ (ASX:GMD) Gwalia processing facility. This work will run for about 3 months starting from July 2023 and will contribute about $4 million in revenue.

Commenting on the contracts, MLG Founder and Managing Director Murray Leahy says: “We are very pleased to be able to extend our relationship with Ora Banda Mining and to be able to continue to support their Davyhurst operation under mutually agreed terms.

The extension of this contract and the award of the new contracts with Gold Fields and Bellevue Gold are evidence of our strong client relationships…”

The extension of this contract and the award of the new contracts with Gold Fields and Bellevue Gold are evidence of our strong client relationships and further demonstrate MLG’s broad capability both in terms of haulage and site services but also in the support for our growing civil construction business.”

MLG Oz is a Kalgoorlie-based mining services provider focused on providing a range of services for gold, iron ore, and other base metal clients throughout Western Australia and the Northern Territory.

These services include building crushing and screening facilities, crusher feeds, material management, bulk haulage, civil construction, road maintenance, rehabilitation work, vehicle maintenance, machine and labour hire, and end-to-end bulk commodity export logistics solutions.

The company owns several quarries near mining operations to supply bulk construction materials, along with a dedicated facility to support export logistics services at the Esperance Port.

Write to Harry Mulholland at Mining.com.au

Images: MLG Oz Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.