$75m Haulage Contract with Westgold Resources

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Stock MLG OZ Ltd (MLG.ASX)
Release Time 18 Feb 2025, 8:51 a.m.
Price Sensitive Yes
 $75m Haulage Contract with Westgold Resources
Key Points
  • MLG Oz secures $75m haulage contract with Westgold Resources
  • Contract includes bulk ore haulage and management of stockpiles
  • Initial 3-year term with potential for over $25m annual revenue
Full Summary

MLG Oz Limited (ASX: MLG) has announced the execution of a key contract with Westgold Resources Limited (ASX: WGX) for the provision of bulk haulage services and agreement to supply goods and/or services across its southern operations in the Goldfields of Western Australia. The new bulk haulage contract encompasses the provision of bulk ore haulage services to transfer Run of Mine (ROM) ore from Westgold's various mines to its Higginsville and/or Lakewood processing facilities. Furthermore, MLG will be responsible for the management and maintenance of ore stockpiles on the ROM pads at Westgold's mines, as well as ongoing haul road maintenance. The total combined value of the contract has the potential to exceed $25 million in revenue per annum for MLG, with an initial three-year term, commencing in early March 2025. This agreement builds on the relationship that MLG commenced with Westgold in the Murchison region some three years ago and provides the opportunity for Westgold to leverage MLG's extensive Goldfield's network as it continues to grow and streamline its recently acquired Southern Goldfields operations. It also further strengthens MLG's presence in the Goldfields region and reinforces its reputation as a leading provider of integrated mining services.