MLG Oz (ASX:MLG) has extended its mining services contract with Ora Banda Mining (ASX:OBM) at the Davyhurst Gold Project in Western Australia for a further three years.
The agreement, which took effect on 1 September, is expected to generate around $16 million in annual revenue. The contract also includes an optional one-year extension at Ora Banda’s discretion.
Under the contract, MLG’s scope includes loading and haulage of ore from nominated mining areas to the Davyhurst run-of-mine (ROM) pad, weighing and recording ore movements, ROM pad and crusher feed loading, and site haul road maintenance with dust suppression activities.
Services will operate continuously on a 24-hour, seven-day basis across the Davyhurst operation.
MLG chief executive Mark Hatfield says the company is ‘delighted’ to extend its relationship with Ora Banda.
“Ora Banda has an exciting growth strategy and significant expansion plans ahead,” Hatfield says.
“We are pleased to continue partnering with the team and look forward to playing an important role in supporting the next phase of development and operational growth across the Davyhurst project.”
MLG Oz is a Kalgoorlie-based integrated mining services and resource asset management company, focused on ore processing facilities across gold, iron ore, lithium, and other base metals in Western Australia and the Northern Territory.
Write to Paula Fabe at Mining.com.au
Images: MLG Oz
