MLG Oz Limited has locked in contracts worth over $45 million annually with Northern Star Resources, extending a partnership spanning more than 10 years across key Western Australian gold operations.
- MLG signs haulage and site services contracts with Northern Star across four Goldfields operations
- Contracts valued at over $45 million per annum, with terms extending to mid-2027
- Partnership with Northern Star now exceeds a decade
- Contracts cover ore haulage, ROM pad management, crusher feed, and concentrate handling
- Follows recent $80 million contract wins with Evolution Mining and Norton Gold Fields
Expanding Footprint in Western Australia's Goldfields
MLG Oz Limited (ASX: MLG) has announced a significant contract milestone, securing agreements with Northern Star Resources Ltd (ASX: NST) that could generate upwards of $45 million in annual revenue. These contracts cover haulage and site services at four of Northern Star's key operations in the Goldfields region: Jundee, South Kalgoorlie, Kanowna Belle, and Kalgoorlie Consolidated Gold Mines (KCGM).
This development not only reinforces MLG's position as a vital service provider in Western Australia's mining sector but also extends a partnership with Northern Star that has now spanned more than ten years. Two of the contracts are set to run until June 30, 2027, providing a stable revenue stream and operational continuity for MLG.
Integrated Services Driving Operational Efficiency
The scope of work under these contracts is comprehensive, encompassing site services, ore loading and haulage, Run of Mine (ROM) pad management, crusher feed operations, and concentrate handling and haulage. MLG's integrated service model, which bundles multiple operational facets under a single contractual framework, is a key differentiator that likely contributed to securing these deals.
MLG Managing Director Murray Leahy highlighted the strategic importance of the contracts, emphasizing the company's central operations hub in Kalgoorlie as the heart of its business. He noted that the extended agreements reflect a shared commitment to a long-standing partnership and the value Northern Star places on MLG's tailored service offerings.
Momentum Builds Amidst Recent Contract Wins
This announcement follows a strong run of contract signings for MLG, including up to $80 million in new contracts with Evolution Mining Limited and Norton Gold Fields Pty Limited announced in December. Additionally, a five-year contract extension with Evolution Mining's Mungari operation, valued at $32 million per annum starting FY2026, underscores MLG's growing footprint in the region.
MLG's diverse capabilities, ranging from civil construction and crushing to bulk haulage and site services, position it well to capitalize on the sustained demand for mining services in Western Australia and the Northern Territory. The company's integrated approach and strategic regional presence continue to attract major mining clients seeking reliable and comprehensive operational support.
Looking Ahead
As MLG consolidates its role as a key service provider to Australia's largest ASX-listed gold producer, the execution of these contracts will be closely watched by investors. The stability and scale of these agreements provide a solid foundation for MLG's growth trajectory, though operational execution and market conditions will ultimately determine the financial impact.
Bottom Line?
MLG's expanded contracts with Northern Star underscore its rising influence in WA's gold mining services sector, setting the stage for sustained growth.
Questions in the middle?
- How will MLG manage operational risks across multiple large-scale contracts simultaneously?
- What impact will these contracts have on MLG's margins given the integrated service model?
- Could MLG leverage this momentum to secure further contracts beyond 2027?