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SUPPLIERS REPORT Contractor Awarded $1.8B Fortescue Mining Deal Australian contract miner Macmahon Holdings Ltd. reported recently that it had been awarded the largest single mining contract in its history. The company secured an A$1.8-billion contract to provide open-cut mining services for the Christmas Creek mine expansion under way by iron ore producer Fortescue Metals Group. Macmahon said the contract brought its mining order book to a record $3.6 billion. Macmahon CEO Ross Carroll said the five-year contract for the Christmas Creek operation in the Pilbara region of Western Australia was significant as the company focused its future on the mining sector. "This is an exciting project that builds on the existing success of our surface mining operations, securing a stronger foundation for the company's mining focused business over the next five years," he said. "Macmahon has a long history of successfully delivering mining projects in the Pilbara and this project further expands the company's presence in the region." The contract, according to Macmahon, encompasses all aspects of mine operations including drill and blast, overburden removal, ore harvesting, maintenance of equipment and associated services. It will involve the movement of approximately 300 million bank cubic meters of iron ore and associated overburden material. Since commencing mobilization to site under a limited notice to proceed, Macmahon said it has recruited about 600 people for the project, with more than 500 employees already mobilized to site. The company said mining activities have begun, with the development of onsite infrastructure under way and the mining of overburden, harvesting and drilling also in progress. Macmahon will operate and maintain the fleet, most of which will be supplied by the client. The fleet includes large scale equipment including 400- and 600-mtclass excavators, 190- to 300-mt-capacity haul trucks, wheel loaders, drills and associated support equipment. The capital requirements are expected to total approximately $30 million during the term of the contract. The company said it recently completed a successful equity raising to support these requirements. Metso Expands Chinese Market Presence Metso continues to widen its market footprint in China, most recently by acquiring a manganese steel foundry in Quzhou City, Zheijang Province, about 400 km south- As part of a $1.8-billion deal recently awarded by iron ore producer Fortescue Metals Group, Australian contractor Macmahon Holdings will conduct all mining activity at Fortescue's expanded Christmas Creek in Western Australia, as well as maintain the mine's large loading and haulage fleet. 78 E&MJ; • MARCH 2013 west of Shanghai. According to the company, the acquisition—announced in early February—will improve its capability to supply wear parts to customers in China and other Asian Pacific markets. The foundry transaction involves the acquisition of assets of Quzhou Juxin Machinery Co., Ltd. and Quzhou Chixin Machinery Co., Ltd. "The acquisitions…and the joint venture with LiuGong Group Corp. Ltd. announced last November, significantly strengthen our supply capabilities for mining and construction industries in China. Metso now has a complete range of capital equipment and wear parts covering a wide range of customer requirements. By acquiring a new steel foundry in China we are able to better serve the needs of our Chinese customers," said Andrew Benko, president of Metso's Mining and Construction business. Metso said it currently has five foundries and a network of external casting suppliers serving its mining customers. The existing foundries are located in Ahmedabad, India; Isithebe, South Africa; Prerov, Czech Republic; Sorocaba, Brazil; and Tampere, Finland. Juxin Machinery had been a supplier to Metso before the acquisition. In addition to the foundry, Metso also expanded its presence in the Chinese equipment market through a joint venture with LiuGong Group and acquisition of Shaorui Heavy Industries Ltd., both announced in November 2012. Metso and LiuGong Group will form a joint venture to develop track-mounted crushing and screening business in China. The joint venture, according to Metso, will combine its expertise in track-mounted crushing and screening technology with LiuGong's distribution resources, comprising about 900 outlets, and manufacturing capabilities in China. Founded in 1958 in Liuzhou, China, LiuGong is claimed to be the largest wheel loader manufacturer in the world, and also offers full product lines of other mobile construction equipment. The initial scope of the joint venture will cover the design and manufacture of localized versions of Metso's Lokotrack 1000 series mobile crushers and screens; the range may be further expanded in the future. The products will be sold under a www.e-mj.com