MACA will acquire a larger scale fleet comprising 126 items of operating mobile mining equipment
Mining West currently has four contracts all based at long-term assets. (Credit: Capri23auto from Pixabay.)
Australian mining services provider MACA has agreed to acquire Downer EDI’s surface contract mining business Mining West, for A$175m ($132.1m).
Focused on Western Australian iron ore and gold sectors, Mining West currently has four contracts all based at long-term assets. The assets include Ansteel’s Karara iron ore project, Fortescue Metals Group’s Eliwana iron ore mine and rail project, Citic Pacific’s Sino iron project and the Gruyere gold project.
Under the terms of the deal, MACA will acquire a larger scale fleet comprising 126 items of operating mobile mining equipment that provides the company with an increased capability to deliver a broader range of projects.
It will also include Mining West’s 14 excavators and shovels, 65 dump trucks, 11 surface drills and 36 other ancillary machines.
MACA will pay A$109m ($82.3m) in cash
For the transaction, MACA will pay A$109m ($82.3m) in cash upon completion of the acquisition and 12 monthly payments of A$5.5m ($4.2m) each.
MACA CEO and managing director Mike Sutton said: “The acquisition of the Mining West business provides MACA with a very meaningful addition of a largescale mining fleet that is currently engaged across four long-life projects, all with quality customers that are well known to me and other key members of MACA’s management team.
“With the inclusion of Mining West, MACA now has total contracted work in hand of over $3.4 billion, that provides a robust revenue base well past FY25.
“MACA remains very active with its tendering activities and is well placed to pursue a significant number of opportunities across both current and new projects.”
The deal is expected to complement the company’s existing mining business and improving its position as a major provider of surface contract mining services to the Western Australia resource sector.
In October this year, Australian mining services provider was awarded a A$185m mining and crushing contract for the Fenix Resources’ Iron Ridge iron ore project in Western Australia.