MLG Oz wins contracts over three projects

MLG Oz has secured $51 million worth of work from contracts over projects with Ora Banda Mining, Gold Fields Australia and Bellevue Gold.

Ora Banda Mining and MLG Oz are finalising terms for a two-year extension of a contract over haulage and site services at Ora Banda’s Davyhurst operation, with a further one-year extension option.

The annual revenue is anticipated to be about $15 million, according to MLG Oz’s ASX announcement today.

The Davyhurst project is about 120 km north west of Kalgoorlie and within the Tier 1 gold mining province in the state’s eastern goldfields.

Ora Banda’s tenements cover an area of about 1,200 square kms.

Kalgoorlie-based MLG Oz also received a letter of award from Gold Fields Australia for civil construction services for eight months at the Gruyere Gold Mine.

The company said the total revenue, subject to final terms and milestone achievements, was anticipated to be $17 million.

MLG Oz will work on Stage 4 of the Gruyere Tailings Storage Facility at the Gruyere Gold Mine, which is a joint venture between Gold Fields and Gold Road Resources.

MLG Oz will also start haulage services for Bellevue Gold at the latter’s Gwalia processing facility.

“The initial works are expected to commence this month and run for approximately three months and contribute circa $4 million in revenue,” MLG Oz said on the ASX.

MLG founder and managing director Murray Leahy said the company was pleased to be able to extend its relationship with Ora Banda Mining and support the 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, 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,” he said.