Canada’s Alberta-based North American Construction Group (NACG) claims to have secured a C$5 billion coking coal mine contract extension in Queensland, Australia, without naming the mine owner.
The Toronto and New York-listed company said the contract was with an existing client of MacKellar Group, which it acquired in 2023 for C$395 million.
Mackellar’s long-term Queensland metallurgical coal-mine contracts have been at Middlemount, owned by Peabody Energy and Yancoal Australia; Whitehaven Coal-operated Blackwater; and Dawson, owned by BUMA International and Peabody Energy.
NACG’s share price is down about 5% in the past month, leaving its market capitalisation at circa-$614 million.
CEO Joe Lambert said the extension deal added $800 million to NACG’s previous $3.2 billion order backlog reported at the end of the first quarter this year. It took the current contract at the mine through to April, 2030.
“The amendments introduce certain risk and reward mechanisms that contractually align NACG with the producer to consistently operate effectively,” NACG said. “The contract does not contemplate growth capital with backlog values generally based on the existing run-rate of the mine.”
Australia is said to account for about $3 billion of NACG’s $4 billion mining contract backlog.
“With record-high backlog, including over $3 billion from Australia alone, we have exceptional revenue visibility through the decade and a rock-solid foundation for long-term growth,” Lambert said.
NACG also has significant oil sands mining contracts in Canada.
