MACA wins $90m Karara contract

Welshpool-based contractor MACA has launched a $90 million contract with Karara Mining over its Hinge direct shipping ore project in the Midwest region of Western Australia.

MACA said it had started initial civil and infrastructure works, with major works expected to begin later in the month.

Major works consist of open-pit mining services, including drilling and blasting, loading and hauling as well as crushing and screening.

“It is pleasing to have once again secured a new contract against the backdrop of a lower price environment for iron ore and a competitive market place,” MACA operations director Geoff Baker said.

The contract has a life of 17 months.

Meanwhile, the company said that its earnings for the financial year would comfortable exceed its previous year’s net profit after tax of $49.5 million.

“Despite a continued suppressed operating environment, MACA continues to perform well across its mining and civil projects and, with the addition of the Hinge project, expects revenue for the end of the next financial year will exceed $600 million,” MACA said in a statement.

MACA also confirmed the appointment and return of Chris Tuckwell as managing director and chief executive officer, effective from August 4.

Mr Tuckwell was managing director of MACA until 2012, where he spent two years as Ausdrill's chief operating officer - Africa, a position that was created when Ausdrill recruited him.

His return to MACA follows the resignation of managing director Doug Grewar, who spent 19 months in the job.

"We are delighted to be able to confirm the return of Chris Tuckwell and we look forward to his contribution," MACA chairman Andrew Edwards said.

MACA shares rose by 4.6 per cent to $2.04 per share at 11:10am.