MACA secures $700m mining contract on Bluff Coal Project in QLD

A $700 million mining contract has been awarded by Carabella Resources to MACA Limited which covers all open pit mining activities at the Bluff Coal Project in Queensland’s Bowen Basin.

Under this contract, MACA will undertake all open pit services which includes planning, procurement, management and supervision. The company will also be delivering load and haul, drill and blast, and water management services over Bluff Coal’s 10-year mine life.

Execution of the contract will begin in December of this year, with the first coal pour expected in early 2019.

For this project, MACA will be financing the drop cut to first coal as well as other minor works through $25 million secured working capital facility. MACA will also be utilising both acquired and hired equipment with a $45 million capital expenditure.

MACA is expected to use larger fleet equipment such as 350-tonne excavators, and 180-tonne to 220-tonne dump trucks.

In addition, the project is expected to generate up to 140 jobs.

“The project will be an ‘alliance’ style contract aimed at delivering the lowest possible cost to our client,” MACA said.

The Bluff Coal Project is located near Blackwater and the mine is expected to produce about 12 million tonnes of pulverised coal injection (PCI) product which will be used for steel-making. The coal from the Bluff mine is going to be process at Bounty Mining’s Cook colliery.

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Source: The West Australian; MiningNews.net; International Mining