North American Construction Group Ltd. (“NACG” or “the Company”) (TSX:NOA.TO/NYSE:NOA) today announced that the MacKellar Group (“MacKellar”) has been awarded an early works and development contract by a major copper producer in the Australian state of New South Wales. The project involves a wide range of production-related activities required for mining but is primarily based on the establishment of site infrastructure in a new mining area, initial overburden removal, and the closure of a previously used reclamation facility.
The award of this project, expected to generate approximately $100 million in revenue, is from a new customer based in New South Wales, a region that is also new to MacKellar, reflecting our objective of geographic and customer diversification. The project is set to begin in the first quarter of 2025 and completion is scheduled for the second quarter of 2026. The scopes will be completed at an operational long-life copper mine which operates continuously seven days a week, twenty-four hours a day. The heavy and light equipment required for the various work scopes will be sourced from existing owned and leased fleet with the majority of the fleet being equipment that has been transported from Canada.
“We are excited with this entry into the New South Wales region and are eager to meet and exceed our client’s expectations,” said Barry Palmer, Chief Operating Officer of NACG and Regional President of MacKellar Group. “With the award complete, we now turn to the important task of a safe productive mobilization on site. This is a critical project for both our customer’s success in ramping up their mine production and our success as a mining and infrastructure contractor in the New South Wales region.”
“Our Australian operations continue to build on its strengths and we are proud that this project aligns with our strategic objective of customer, commodity and geographic diversification. I would like to welcome this customer to MacKellar as we look to establish another longstanding relationship built on world-class safety and operational excellence,” said Joe Lambert, President and Chief Executive Officer.
For clarity, the scopes included in this award were contemplated as unsecured work to be completed by existing fleet in the outlook for 2025 provided on December 5, 2024. While improving overall visibility and line of sight to now being over 90% of our combined revenue midpoint for 2025, this award does not increase our estimated ranges for next year.
