MLG Oz Limited has been awarded a civil project to construct a 26 km all-weather bitumen sealed haul road between the Castle Hill mining centre and the Mungari mill, owned by a subsidiary of Evolution Mining Limited.
This infrastructure will enable uninterrupted road train haulage from satellite run of mine (ROM) pads to the main ROM pad near the MGO processing plant and will be important to supporting Evolution’s expansion project ‘Mungari 4.2’, as well as to facilitate the mining ramp-up at Castle Hill, the company says.
The contract is scheduled to commence in December 2024 with completion targeted for May 2025.
MLG also extended its relationship with Paddington Gold Pty Limited, a wholly owned subsidiary of Norton Gold Fields Pty Limited, through the signing of a new three-year contract.
Since 2021, MLG has been providing its integrated haulage and site services at Norton’s Paddington Mill, with the new contract continuing that relationship to at least 2027.
MLG’s scope of work includes loading of ore at designated sites; haulage of ore to the Paddington Mill Site (estimated to 11 Mt (wet) handled) over the contract term; and road maintenance.
The combined value of the Evolution and Norton contracts exceeds A$80 million ($51 million) in revenue for MLG and, as importantly, broadens MLG’s provision of integrated services across two of its key clients in the Western Australian Goldfields.
MLG Managing Director, Murray Leahy, said: “We will be transitioning this large-scale off-road hub and spoke haulage project to one that can mitigate the effects of wet weather which will ensure optimised haulage rates between the pit and mill. MLG is pleased to be expanding its relationship with Evolution beyond haulage and site services to now include our civil division. It reinforces our strong partnership and commitment to delivering high-quality civil and mining services to our clients.
“We are also really pleased to have extended our relationship with Norton Gold, which enables MLG to continue to provide key infrastructure support services to their Paddington Mill operations.
“The combined value and tenure of these contracts further bolsters MLG’s foundation of contract work on some of the Goldfields’ most important projects, in a strong gold market.”
