MLG’s Expansion in Goldfields Hinges on New $75M Westgold Contract
MLG Oz Limited has secured a significant $75 million haulage contract with Westgold Resources, poised to generate over $25 million annually and deepen its footprint in Western Australia's Goldfields region.
- MLG signs $75 million bulk haulage contract with Westgold Resources
- Contract valued at over $25 million revenue per annum for three years
- Services include bulk ore haulage, stockpile management, and haul road maintenance
- Strengthens MLG’s presence and integrated service offering in Goldfields
- Builds on existing relationship with Westgold and recent contract wins
MLG Secures Major Contract with Westgold
MLG Oz Limited (ASX: MLG) has announced the execution of a pivotal haulage contract with Westgold Resources Limited (ASX: WGX), marking a significant expansion of its operations in Western Australia's Goldfields. The agreement, valued at $75 million over three years, is expected to generate more than $25 million in annual revenue for MLG, commencing in early March 2025.
The contract encompasses bulk ore haulage services, transferring Run of Mine (ROM) ore from Westgold’s mines to processing facilities at Higginsville and Lakewood. Beyond haulage, MLG will manage ore stockpiles on ROM pads and maintain haul roads, reflecting a comprehensive service scope that leverages MLG’s integrated mining services model.
Strategic Growth in the Goldfields
This deal builds on a three-year relationship between MLG and Westgold in the Murchison region, now extending into Westgold’s Southern Goldfields operations. It underscores Westgold’s strategy to optimise its recently acquired assets by utilising MLG’s extensive regional network and operational expertise.
MLG’s Managing Director, Murray Leahy, highlighted the contract as a milestone in scaling the company’s footprint and service breadth across the Goldfields. He emphasised the shared focus on efficiency, safety, and operational scale as key drivers behind the partnership’s success.
Broader Implications for MLG
The contract award follows a strong period of growth for MLG, which has recently secured agreements with other major miners including Northern Star Resources, Evolution Mining, and Norton Gold Fields. This momentum positions MLG as a leading provider of integrated mining services in the region, with capabilities spanning civil construction, crushing and screening, bulk haulage, and site services.
MLG’s integrated business model, which often consolidates multiple service lines under a single contract, offers clients streamlined operations and cost efficiencies. The new Westgold contract further cements this approach, enhancing MLG’s reputation and operational scale in a competitive market.
As MLG continues to expand its service portfolio and regional presence, the company is well placed to capitalise on ongoing mining activity and infrastructure development in Western Australia’s resource-rich Goldfields.
Bottom Line?
MLG’s latest haulage contract with Westgold signals robust growth and deeper integration in the Goldfields mining services sector.
Questions in the middle?
- How will MLG manage operational risks associated with scaling haulage and maintenance services?
- What impact will this contract have on MLG’s margins and overall profitability?
- Could this deal pave the way for further long-term partnerships with Westgold or other miners?