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Highlights:
- North American Construction Group awarded a $125 million heavy civil construction project in the oil sands region.
- The two-year project involves building diversion ditches for water management at a major oil sands mine.
- The award strengthens NACG's long-term strategic partnership with Mikisew North American Limited Partnership (MNALP).
North American Construction Group Ltd. (NACG) (TSX:NOA) (NYSE:NOA) has announced the award of a major heavy civil construction contract by Mikisew North American Limited Partnership (MNALP), a key partner in the oil sands region. The project, valued at approximately $125 million, is set to begin in January 2025 and is expected to be completed by October 2026. It involves the construction of large diversion ditches designed to redirect water away from active mining areas and manage water flow to downstream locations, contributing to environmental management and operational efficiency at one of the region's leading oil sands mines.
Significant Project with Strong Client Trust
The award of this contract marks a significant achievement for NACG, demonstrating its expertise in large-scale civil infrastructure projects and reinforcing its long-term relationships with key clients in the oil sands sector. The two-year project is set to generate substantial revenue for the company and is located at one of the Fort McMurray area's top mining sites. NACG’s experience in the region and its ability to deliver seamless integration with existing mine support activities were key factors in securing this project.
“This project exemplifies our capability in handling large civil construction projects and reinforces our reputation as a trusted partner in the oil sands region,” said Joe Lambert, President and Chief Executive Officer of NACG. “Our ongoing collaboration with Mikisew North American Limited Partnership is a cornerstone of our long-term strategy. We are committed to delivering this project with the highest standards of safety, quality, and operational efficiency.”
Strengthening Partnerships and Synergies
This heavy civil construction project highlights the synergies between NACG’s civil infrastructure and mine support operations, strengthening the strategic partnership between NACG and MNALP. The work to be carried out is critical for ensuring that water management systems remain effective, particularly in areas where active mining operations intersect with watercourses. By redirecting water from upstream catchments, the project will help minimize the impact on mining activities and maintain environmental stewardship, an essential component of oil sands operations.
Jeff Epp, Interim Chief Executive Officer of Mikisew Group, added, “This project represents our shared commitment to delivering innovative solutions that enhance operational efficiency while ensuring environmental responsibility. We are proud to work alongside NACG, bringing our expertise to a project that directly supports the long-term success of our client’s operations.”
About Mikisew North American Limited Partnership (MNALP)
Mikisew North American Limited Partnership (MNALP) is a limited partnership in which North American Construction Group holds a 49% interest, with Mikisew Group of Companies holding the majority 51% interest. The partnership focuses on delivering heavy civil construction services in the Athabasca Oil Sands Region. NACG has a strong track record of successful projects as a subcontractor for MNALP, continuing to build on its reputation for excellence in large-scale infrastructure projects.
