MLG’s Crushing Contract Extension with Fortescue Raises Questions on Future Growth

Contract Win Solidifies MLG’s Role in Iron Ore Mining Services

MLG Oz Limited (ASX – MLG) has announced a significant new contract with Fortescue Limited’s wholly owned subsidiaries, Chichester Metals and FMG Solomon, to provide crushing and screening services across four major mine sites in Western Australia. The agreement, commencing in July 2025, spans an initial 24 months with an option to extend for an additional year, securing MLG’s operational involvement through mid-2028.

This contract covers Fortescue’s Christmas Creek, Cloudbreak, Solomon, and Eliwana sites, key assets in the company’s iron ore portfolio. MLG will deliver fully maintained mobile crushing and screening equipment, alongside the necessary personnel and infrastructure to support stemming production services, a critical component in ore processing and logistics.

Strategic Importance and Market Positioning

Managing Director Murray Leahy highlighted the longstanding relationship between MLG and Fortescue, noting the contract extension as a testament to MLG’s reliability and expertise. The deal not only ensures steady work and revenue for MLG’s crushing and screening division but also positions the company to expand its capabilities and deepen its footprint within the mining services sector.

MLG’s integrated business model, which includes civil construction, bulk haulage, and resource asset management, complements this contract by offering comprehensive solutions under a single framework. This holistic approach is increasingly valued by mining operators seeking efficiency and consistency across their supply chains.

Looking Ahead – Growth and Operational Continuity

While the announcement does not disclose financial terms, the contract’s duration and scope suggest a meaningful contribution to MLG’s near-term revenue and operational planning. The option to extend for a further 12 months provides flexibility and potential upside, contingent on Fortescue’s ongoing project needs and market conditions.

As iron ore demand continues to fluctuate globally, securing multi-year contracts with major miners like Fortescue offers MLG a degree of stability and a platform for future growth. Investors will be watching closely for updates on contract execution and any further expansions of MLG’s service offerings.