MLG Oz Lands $20M Rio Tinto Contract to Expand Pilbara Footprint
MLG Oz Limited has secured its first contract with mining giant Rio Tinto, marking a significant expansion into the Pilbara region with a $20 million haulage and site services deal.
- First contract awarded by Rio Tinto to MLG Oz
- 12-month bulk haulage and site services agreement
- Contract valued at approximately $20 million
- Services include ore haulage, rock breaking, and road maintenance
- Strategic move expanding MLG’s presence beyond WA goldfields
MLG Oz Secures Inaugural Rio Tinto Contract
MLG Oz Limited (ASX: MLG) has taken a major step forward by signing its first contract with Rio Tinto (ASX: RIO), one of the world’s largest mining companies. The agreement, valued at around $20 million over 12 months, will see MLG provide bulk haulage and a suite of site services at Rio Tinto’s Western Turner Syncline Mine in the Pilbara region of Western Australia.
Expanding Reach Beyond the Goldfields
Traditionally focused on the WA goldfields, MLG’s new contract represents a strategic expansion into the Pilbara, a key iron ore mining hub. The services covered under this deal are comprehensive, including off-road bulk ore haulage, material loading, rock breaking, unloading, stockpile management, and road maintenance. This breadth of service underscores MLG’s integrated approach to mining support.
Building Trust Through Efficiency
MLG’s Managing Director, Murray Leahy, highlighted that the contract is the result of Rio Tinto’s thorough evaluation of MLG’s operational standards and efficiency, particularly its innovative hub and spoke delivery model. This model aims to streamline logistics and reduce costs, a factor that likely contributed to Rio Tinto’s decision to engage MLG as a supplier.
A Potential Long-Term Partnership
While the contract is initially for one year, both parties appear optimistic about the potential for a longer-term relationship. For MLG, this deal not only brings immediate revenue but also positions the company as a credible player in the Pilbara mining services market, potentially opening doors to further contracts with Rio Tinto and other operators in the region.
MLG’s Integrated Service Offering
MLG Oz Limited operates an integrated business model offering civil construction, crushing and screening, bulk haulage, and supply of mining materials. Its capabilities extend to build-own-operate models and comprehensive site services, supported by facilities such as its Esperance Port logistics hub. This contract with Rio Tinto aligns well with MLG’s strategy to leverage its full-service offering across Western Australia and the Northern Territory.
Bottom Line?
MLG’s maiden Rio Tinto contract could be the first of many as it stakes its claim in the Pilbara mining services arena.
Questions in the middle?
- Will MLG secure contract extensions or additional work with Rio Tinto beyond the initial 12 months?
- How will MLG’s hub and spoke model perform operationally in the challenging Pilbara environment?
- Could this contract pave the way for MLG to partner with other major miners in the region?
