Western Plains Resources has given a $285 million mining contract for the Peculiar Knob high grade iron ore project in South Australia to MACA Ltd. The mine is located 90 km south east of Coober Pedy, a town known as the opal capital of the world.
Shares of the Western Australia based mining contractor MACA rose by 12.8 % after the announcement. They closed Tuesday at $2.60 after hitting $2.82 earlier in the day.
The Peculiar Knob mining project represents a six year contract with WPG Resources. It will commence in April 2011 and is the first project for the mine contracting firm outside Western Australia. MACA is likely to provide drill and blast services along with loading and haulage of ore and waste material at the mine site.
WPG resources hopes to export 3.3 million tonnes of high grade ore each year from Peculiar Knob for direct shipping after production begins. They hope to begin exports before the end of 2011. As per an announcement from MACA its subsidiary Mining and Civil Australia will employ about 100 people on the project when the mine is in full production.
MACA executive chairman Bob Duffin said that the Peculiar Knob project is the first contract awarded to MACA outside Western Australia and represents an important next phase of growth for the company. He added that the company was now waiting on two approvals. One for the mining and rehabilitation plan (MARP) for the mine. Secondly for the Development Assessment Commission (DAC) approval for the company's export facility at Port Pirie.