Regulatory Hurdles Ahead Despite Capricorn’s MACA Contract Wins for Key Gold Projects
Capricorn Metals has extended its mining contract with MACA Ltd for Karlawinda and named MACA preferred contractor for Mt Gibson, locking in cost certainty and supporting production growth.
- Five-year extension of Karlawinda mining contract with MACA
- Existing unit cost rates maintained despite increased mining volumes
- MACA selected as preferred contractor for Mt Gibson after competitive tender
- Mt Gibson contract subject to regulatory approval, no financial obligation yet
- MACA’s involvement de-risks project timelines and equipment mobilisation
Contract Extension Secures Karlawinda Expansion
Capricorn Metals has announced a significant milestone by extending its mining contract with MACA Ltd at the Karlawinda Gold Project for an additional five years, with an option for further extension. This move confirms the existing unit cost rates, a crucial factor given that mining costs constitute over half of the project’s operating expenses. The extension supports the Karlawinda Expansion Project, which aims to increase ore processing to 6.5 million tonnes per annum and boost gold production to approximately 150,000 ounces annually.
MACA has already mobilised a larger mining fleet to meet the increased mining volumes, achieving monthly mining rates between 1.2 and 1.4 million bank cubic metres. This early ramp-up is essential to strip waste material and ensure a steady ore feed once the expansion is fully operational.
Preferred Contractor Status at Mt Gibson
In parallel, Capricorn has selected MACA as the preferred mining contractor for the Mt Gibson Gold Project following a competitive tender process. This selection validates Capricorn’s reserve model costing, as MACA’s bid aligns closely with budgeted unit cost rates. However, the contract remains conditional on regulatory permitting, with no financial obligations imposed until approvals are secured.
The company recently submitted the final Public Environment Report to the Department of Climate Change, Energy, the Environment and Water, marking a key step in the regulatory process. Early contractor selection positions MACA to mobilise quickly once Capricorn receives the green light, mitigating risks related to equipment lead times and service delivery.
Strengthening a Proven Partnership
MACA, a subsidiary of global mining services provider Thiess, brings extensive experience and a strong track record in Australian gold mining. Capricorn’s Executive Chairman Mark Clark highlighted the long-standing successful relationship between the two companies, emphasizing the strategic importance of securing MACA’s services for both projects. This continuity not only ensures operational efficiency but also reinforces Capricorn’s confidence in delivering on its growth ambitions.
Overall, these contract awards underpin Capricorn’s production growth plans and provide cost certainty amid a challenging mining environment. They also demonstrate Capricorn’s proactive approach to de-risking project development timelines through early contractor engagement and regulatory progress.
Bottom Line?
Capricorn’s dual contract wins with MACA set the stage for accelerated growth, but regulatory approvals remain the next critical hurdle.
Questions in the middle?
- When will Capricorn receive final regulatory approval for the Mt Gibson project?
- How might potential fluctuations in mining costs impact the Karlawinda Expansion Project?
- What are the contingency plans if MACA’s mobilisation faces delays or operational challenges?
