NOA - North American Construction Group Ltd. Announces Significant Five-Year Contract Extension in Australia | Benzinga
ACHESON, Alberta, March 05, 2024 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. ("NACG" or "the Company") (TSX:NOA, NYSE:NOA) today announced that the MacKellar Group ("MacKellar") has been awarded a five-year contract extension by a major metallurgical coal producer in relation to a mine in the state of Queensland, Australia. The contract contemplates the provision of fully maintained equipment and related services at the site operated by the producer.
The award extends the expiry date from June 6, 2025 to June 30, 2030 and qualifies as contractual backlog given minimum hour commitments in the agreement. Rental scopes are estimated at $100 million per year resulting in a total value from this extension of $500 million. The contract requires the addition of two loading units and one service truck, for between $20 and $25 million, which will be purchased in 2024 Q4 and bring the total dedicated fleet at this site to approximately seventy heavy equipment units.
"We are excited about this extension and look forward to continuing the relationship we have with our customer at ...