North American Construction Group said its subsidiary MacKellar Group has been awarded a five-year contract extension by a major metallurgical coal producer in Queensland, Australia.
The new contract is good through June 30, 2030, and requires the addition of two loading units and one service truck, which will be purchased in Q4 2024. This will bring the total dedicated fleet at the site to 70 heavy equipment units.
“This is the first material contract we have signed in Australia since the acquisition of MacKellar and are very proud of how well the first five months have gone. MacKellar has provided an excellent platform to grow our business in Australia as we leverage our operational and maintenance expertise in the region,” said Joe Lambert, president and CEO of NACG.
“We believe this ‘locking in’ of fleet is indicative of the strong demand for heavy equipment in the Australian mining sector. In light of this demand, and bolstered by long-term contracts, we have begun to take steps towards prudently increasing fleet size in Australia, including potentially transferring underutilized Canadian fleet into that market with the goal of maximizing overall utilization.”
Rental scopes for the new contract are estimated at $100 million per year resulting in a total value from the extension of $500 million.