Guma IRCG
Guma ICRG is a mining services company located in the East Pilbara that provides civil and mining services support to major iron ore companies for the benefit of the Northwest Indigenous community.
Need
Guarantee support for Roy Hill Iron Ore project to deliver, design and construct services for a rail office, rail workshop and crib infrastructure.
Solution
We issued two bonds totaling A$366,000 to Guma’s bank, which allowed the bank to issue its own bonds to Roy Hill in support of Guma’s design and construction contract.
Established in 2012, Guma is 50 per cent owned and operated by local Nyiyaparli Traditional Owners Raymond Drage, Michael Stream and Victor Parker, and is chaired by prominent indigenous leader and academic Marcia Langton.
This helps to ensure Aboriginal communities benefit from, and contribute to, the success of the region’s mining sector.
Although only operating for three years, Guma has a strong performance record and a large book of short and long-term contracts.
Guma specialises in providing civil maintenance and construction support services, and has secured and delivered on a large number of contracts supporting the mining exports sector.
The Roy Hill Iron Ore project is a significant contract for Guma and Export Finance Australia’s support allowed us to secure this important project.
Angelo Radeski
Managing Director, Guma
A high-profile contract
Guma secured a contract on the Roy Hill Iron Ore project to deliver, design and construct services for a rail office, rail workshop and crib infrastructure. The scope of the contract included design, deconstruction, transport, supply, reassembly, construction and installation works.
However, this contract had large guarantee obligations, with Guma required to submit A$366,000 worth of bonds to guarantee delivery of the works.
While Guma’s banks were very supportive of this contract, both were unable to provide a guarantee facility without 100 per cent security, despite Guma’s excellent performance track record.
One of Guma’s service providers was aware of the financial solutions that we provided and so suggested Guma get in touch to see if we could help.
Our financial solution
We issued two bonds totalling A$366,000 to Guma’s bank, which allowed the bank to issue its own bonds to Roy Hill in support of Guma’s design and construction contract.
These bonds allowed Guma to meet its contractual obligations and to successfully deliver on the full scope of works for the project.
Not having precious working capital tied up also meant Guma could tender for new work at the same time, with Guma also seeing new opportunities opening up within the Roy Hill project as well.