MLG Oz (ASX:MLG) has secured a bulk haulage services contract with Westgold Resources (ASX:WGX), which has the potential to exceed $25 million in revenue per year.
Under the agreement, which has an initial three-year term from March 2025, MLG will supply goods and services across Westgold’s southern operations in the Goldfields region of Western Australia.
The contract encompasses the provision of bulk ore haulage services to transfer run of mine ore from various mines of Westgold’s to the Higginsville and Lakewood processing facilities.
MLG, which has a market capitalisation of $95.95 million, will also be responsible for the management and maintenance of ore stockpiles on the run-of-mine pads, as well as ongoing haul road maintenance.
Managing Director Murray Leahy says the new contract represents another milestone for the company as it continues to broaden its provision of services and scale up operations across the Goldfields.
“We are very pleased to further our relationship with Westgold, the combination of this work into our portfolio builds on the businesses’ shared philosophy of unlocking value through a strategic focus on efficiency, safety, and scale,” Leahy says.
The agreement builds on MLG’s relationship with Westgold which began some three years ago. The company says it provides the opportunity for Westgold to leverage MLG’s extensive Goldfields network as it continues to grow and streamline its Southern Goldfields operations.
MLG is a Kalgoorlie-based integrated mining services and resource asset management company. The company offers a range of services under an integrated business model, including open pit mining and construction materials.
Write to Aaliyah Rogan at Mining.com.au
Images: MLG Oz
