Macmahon wins $172m underground contract
Macmahon (ASX: MAH) has announced that it has been awarded an underground mining services contract at the Deflector underground gold-copper mine in the southern Murchison region of WA.
The contract includes all underground and mine development and production services and all other associated works.
The two-year contract commences on May 1 this year, with possible extension, and is expected to add $105m to Macmahon’s secured orderbook.
Macmahon managing director and chief executive Michael Finnegan commented that the company is pleased to have been awarded the contract.
“Macmahon values our relationship and are excited to continue building on this,” he said.
“I would like to thank the Vault and Macmahon teams for their continued dedication and look forward to continuing to support the development of the Deflector operation.”
Macmahon also confirmed that it will be the contractor for Genesis Minerals (ASX: GMD) at both the Gwalia and Ulysses sites, adding a further $67m to Macmahon’s order book.
“We are delighted to continue as the mining contractor for Genesis at Gwalia and Ulysses gold projects, both key assets in Genesis’ strategic growth plans for the Leonora region,” said Mr Finnegan.
This follows Macmahon securing a new $900m contract with Byerwen Coal, a joint venture with QCoal Group and JFE Steel, to extend its operations at the Byerwen coking coal mine in Queensland’s Bowen Basin.
The company has been providing open cut mining services, including load and haul and crusher feed, at Byerwen since its establishment in 2017.
“We will continue to refine the terms and conditions over the next few months with a focus on mutually beneficial outcomes that will enhance operational efficiency,” said Mr Finnegan.
“The QCoal relationship and Byerwen project have been key to the Macmahon business stabilising over the last eight years.
“The teams are grateful and excited that they will the opportunity to continue to develop that relationship on site and corporately.”