19/01/2015 - 10:31

MACA leaves Paroo, maintains revenue

19/01/2015 - 10:31

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MACA has signed a new $9 million deal to provide services to Doray Minerals at its Meekatharra gold project, as the mining and civil engineering firm winds down operations at Rosslyn Hill Mining's lead operation at Paroo Station near Wiluna, which will be put on care and maintenance next month.

MACA leaves Paroo, maintains revenue

MACA has signed a new $9 million deal to provide services to Doray Minerals at its Meekatharra gold project, as the mining and civil engineering firm winds down operations at Rosslyn Hill Mining's lead operation at Paroo Station near Wiluna, which will be put on care and maintenance next month.

The decision to stop work at Paroo Station won’t change revenue for the 2015 financial year, MACA said, which is expected to be in excess of $650 million.

“The Rosslyn Hill contract is the smallest of MACA’s full services continuous mining projects by monthly revenue and capital employed,” the company said in a statement.

MACA will be meeting with Rosslyn Hill over the next few days to discuss the contractual implications of its decision to halt operations.”

The decision to put Paroo Station, which has 145 employees and 80 contractors, on care and maintenance was the result of steep falls in the price of lead.

It was made by Ivernia, Rosslyn Hill's Canadian-based parent company, which posted record production and sales in 2014.

Ivernia chief executive Wayne Richardson said the current lead price had dropped well below sustainable levels and could not support the company's profitable ongoing operations in the Mid West of WA.

"In order to protect shareholder value and conserve the viable deposits of our ore body, the decision has been made to place the mine on care and maintenance until further notice," Mr Richardson said.

He added that operations would return to full production once prices improved.

MACA also announced it had signed a contract to provide open pit mining services at the second stage of Doray Minerals’ Andy Well gold project near Meekatharra for about $9 million.

The scope of work includes drilling, blasting, loading and hauling over a six-month period.

Shares in MACA were 3.7 per cent higher at 98 cents per share at 10am.

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