Supply chains solutions provider MLG Oz has been awarded a contract to supply integrated site services and haulage works to Genesis Minerals.
The award is still subject to the final execution of contracts, however the scope of works and commercial terms have been agreed upon.
As per the contract, MLG Oz is expected to work closely with Genesis to support its strategic growth plans in the prolific Leonora district in Western Australia. Genesis formally acquired St Barbara’s Leonora gold assets in July.
Highlights from the agreement include it covering a three-year period that will begin in November 2023, with ramp up of production to transition through the second half of the 2024 financial year, and will continue into the 2025 financial year (FY25).
MLG Oz estimates that full year revenues in FY25 could equal about $15 million, which could then grow to around $30 million in FY26.
It described Genesis as a well-funded client that has sustainable production growth underpinned by large, long-life reserves.
“MLG’s regional position across the Leonora mineral field and strength of our underlying operations across this region ensures we are well placed to grow with Genesis and help them execute on their long-term strategy,” MLG Oz managing director Murray Leahy said.
“We are delighted to be welcoming Genesis as a new strategically important customer through the award of this contract, allowing MLG to play a major role in the enhancement and growth of mineral production in the Leonora region.
“The Leonora mineral field is currently going through a level of consolidation and growth in processing capacity not experienced before. MLG’s large regional presence and scale of support infrastructure located within the region that is currently delivering for our high-quality customer base positions us extremely well to capitalise on these opportunities.”
In July, it was announced that MLG Oz will transport open pit material to Genesis’ Gwalia processing facility, where about 100,000 tonnes of ore was planned to be processed.