MACA wins $40m in contracts

Civil and mining contractor MACA has secured another contract with First Quantum Minerals, worth $20 million, and further contracts with VicRoads totalling $19.5 million, while also announcing the closure of its Brazil operations.

MACA’s mining division received a letter of intent from First Quantum Minerals subsidiary FQM Australia Nickel for mining, crushing and screening works at the Tamarine Limestone Quarry over a three-year period.

The project is located about 12 kilometres south-west of First Quantum’s Ravensthorpe nickel mine.

Works are expected to start next month and will utilise crushing equipment, MACA said.

The letter of intent follows the $480 million mega contract awarded by First Quantum to MACA in November last year for the restarting of operations at the Ravensthorpe mine.

Meanwhile, MACA’s Victoria-based civil and infrastructure business has been awarded a $9.5 million construction contract by VicRoads for work on the Bacchus Marsh Road project in Geelong.

MACA will complete Stage 2A safety improvements, with the works expected to take six months to complete.

Further, the company was awarded minor works contracts with VicRoads and local Victorian shires, totalling around $10 million.

At the same time, the company announced the early termination of its contract with OZ Minerals for load and haul, drill and blast operations at the Antas copper mine in northern Brazil.

The project was previously owned by Avanco Resources, which was acquired by OZ Minerals in 2018.

MACA’s contract with OZ Minerals subsidiary AVB Mineracao was due to conclude this year.

MACA said while its work in hand position would be reduced by $8 million, the company expects to have $2.3 billion worth of ongoing projects across all business units at January 31.

The company said it also expected a non-cash impairment of around $2 million and foreign exchange losses of around $5 million, based on current exchange rates.

Profit from ordinary operations would not likely be impacted, MACA said.

Guidance for the 2020 financial year remains at $770 million in revenue and earnings before interest, taxation, depreciation and amortization (EBITDA) from operations to be between $104 million and $110 million.