01/05/2017 - 12:56

Maca wins Northern Minerals contract

01/05/2017 - 12:56

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MACA has won a $6 million contract to provide mining services to Northern Minerals’ Browns Range heavy rare earths pilot project, while an additional $4 million bulk earthworks contract is also due to be awarded to the Perth-based company.

George Bauk says Maca has a reputation for reliability and experience.

MACA has won a $6 million contract to provide mining services to Northern Minerals’ Browns Range heavy rare earths pilot project, while an additional $4 million bulk earthworks contract is also due to be awarded to the Perth-based company.

Northern said today that Maca would mine 180,000 tonnes of ore and waste from the project, with waste material to be used to construct the tailings storage facility and other surface infrastructure.

It also said a bulk earthworks agreement with Maca was close to being signed, which would take the mining services company’s total work value at Browns Range to $10 million.

“Maca will also clear the processing plant site and construct internal road access,” the company said.

“This mining agreement and the bulk earthworks agreement will form part of the Sinosteel MECC lead contractor agreement signed in December, which includes a deferred payment of 20 per cent for all works undertaken by the lead contractor Sinosteel, including the mining and bulk earthworks.”

All ore will be stockpiled ahead of a three-year pilot plant phase.

Northern announced last month plans to spend $56 million developing the pilot plant for the rare earths project in Halls Creek, with first production expected next year.

Northern chief executive George Bauk said the appointment of Maca as the company’s mining partner ensured everything would be in place ahead of plant installation later in the year.

“Maca is a quality contractor with a very good industry reputation for reliability and experience,” he said.

Maca shares were 1.2 per cent higher to $1.68 each at midday.

Northern shares were 4 per cent lower to 12 cents each.

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