Maca wins $700m coal contract
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Welshpool-based MACA has secured a $700 million mining services contract at Carabella Resources’ Bluff coal project in Queensland for the next 10 years.
Under the contract, Maca will undertake open-pit mining activities including planning, procurement, management and supervision, load and haul, drill and blast, and water management.
Work is set to commence in the second quarter of the financial year, with first coal expected in the third quarter.
The project will be an alliance-style contract, with an expected labour requirement of about 140 employees.
The mining services company will finance the drop-cut to first coal and other minor project works via a secured working capital facility of up to $25 million.
The project will use acquired and hired equipment with capital expenditure of approximately $45 million.
Maca said the contract took its total work in hand to $1.98 billion, with the company reaffirming its revenue guidance of about $620 million for FY19.
Earlier this week, the company reported a 26 per cent decline in profit to $23.6 million for the 2018 financial year.
Shares in Maca were off 1.13 per cent at $1.31 each at 11am AEDT.