Haulage group to spend $30 million in equipment and infrastructure to support the extra tonnage
Listed transport group McAleese has provided some promising news after a series of blows wiped two-thirds of its share price over the past quarter.
The source of the positive vibe is McAleese Resources, which will double its road haulage task for Atlas Iron under the terms of its existing four-year agreement to six million tonnes a year at the Mt Webber mine, about 230 km from Port Hedland’s Utah Point shipping terminal.
Haulage is due to start mid-year.
But a bounce in the share price, which had neared 40 cents on negative fuel transport news from a high in January of $155, actually began last week and has now reached 60 cents.
The extra tonnage is worth an extra $220 million to McAleese over the life of the contract.
The company says it will spend about $30 million in operating equipment and supporting infrastructure during the second half of the calendar year.
“We have expanded out Port Hedland facility and are continuing to grow our operational capacity in the Pilbara,” CEO Mark Rowsthorn says.