MACA wins $230m Corunna Downs contract
Thursday, July 2nd, 2020
Atlas Iron has awarded MACA a contract to carry out open pit mining services at the Corunna Downs iron project in the Pilbara region of Western Australia.
Corunna Downs, which is 100 per cent owned by Atlas Iron, is 33 kilometres south of Marble Bar and close to the iron ore miner’s Mt Webber project.
The mine is expected to annually produce four million tonnes of iron ore initially. The life of the mine is expected to be between five and six years, with potential for future expansion as the current ore reserve considers only the above-water table resource.
As part of the project, MACA will deliver open pit mining services including drilling & blasting and loading & hauling.
MACA expects the project to generate approximately $230 million revenue over the contract’s 62-month term.
Mike Sutton, chief executive of MACA, said the contract built on the existing relationship between MACA and Atlas Iron.
“We are please to have been selected as the contract miner for Atlas building on our workload in the iron ore sector with an existing client,” he said.
MACA has previously worked with Atlas Iron on a number of operations, including providing services at the Pardoo, Mt Dove, Abydos and Wodgina operations.
The contractor is currently providing crushing services for Atlas at its Mount Webber operations and civil works at Corunna Downs.
The new contract brings MACA’s total work-in-hand to $2.2 billion, as the company announced on ASX on Thursday. MACA also remained in a strong position in terms of liquidity, claiming cashflow collections of $113 million and net debt of $74 million as at June 30.https://www.australianmining.com.au/news/maca-wins-230m-corunna-downs-contract-from-atlas-iron/