 and is the largest contract signed in the company’s historyThe extended mine services contract has an expiry date of April 30, 2030, provides total backlog of approximately C$2 billion ($1.5 billion) and is the largest contract signed in the company’s history){kind=link}
North American Construction Group Ltd (NACG) has announced that its wholly-owned subsidiary, the MacKellar Group, has been awarded an amended and extended five-year contract by an existing client, a leading coal producer in the state of Queensland, Australia.
The extended mine services contract has an expiry date of April 30, 2030, provides total backlog of approximately C$2 billion ($1.5 billion) and is the largest contract signed in the company’s history.
The extension results in an C$800 million increase to backlog in relation to the original contract. The amendments introduce certain risk and reward mechanisms that contractually align NACG with the producer to consistently operate effectively, NACG says. The contract does not contemplate growth capital with backlog values generally based on the existing run-rate of the mine, it added.
NACG acquired MacKellar in July 2023 for C$395 million.
This incremental value results in total contractual backlog for the company of C$4 billion as of March 31, 2025, on a proforma basis, compared with the C$3.2 billion reported in the March quarter 2025 results. This level of backlog sets another company record, surpassing the previous record of C$3.5 billion reported on December 31, 2024.
“Signing the largest contract in our history is a testament to the consistent execution and trusted partnerships we’ve built,” Joe Lambert, President and CEO of NACG, said. “With record-high backlog, including over C$3 billion from Australia alone, we have exceptional revenue visibility through the decade and a rock-solid foundation for long-term growth.”