Mining infrastructure services provider Macmahon Holdings has secured a two-year underground mining services contract valued at A$105m ($67.2m) for the Deflector underground gold copper mine in Western Australia (WA).
The contract may be extended beyond the initial two-year period by mutual agreement. The company will begin work at the mine next month.
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Since Macmahon already has its personnel and mining fleet in place and is operational at the Deflector mine, no substantial capital expenditure is needed beyond maintenance costs.
Macmahon managing director and CEO Michael Finnegan said: “We are very pleased to have been awarded an underground mining services contract at Deflector where we have worked closely with the Vault team over several years.
“Macmahon values our relationship and is excited to continue building on this. 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.”
Furthermore, Genesis Minerals has also confirmed Macmahon as the mining contractor at the Gwalia and Ulysses gold projects in the Leonora region of WA.
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By GlobalDataThe new contract, which replaces the previous agreement at Gwalia by mutual consent, encompasses services at both locations.
The 13-month contract is set to begin this month, contributing an additional A$67m to Macmahon’s orderbook.
The company has stated that this will not require substantial capital expenditure and that the total capital expenditure budget for the financial year 2025 remains at A$230m.
The scope of both contracts includes all aspects of underground mining, from development to production services.
Finnegan added: “We are delighted to continue as the mining contractor for Genesis at the Gwalia and Ulysses gold projects, both key assets in Genesis’ strategic growth plans for the Leonora region. We look forward to supporting Genesis, and I am confident we will continue to build on our strong relationship.”
Earlier this month, Macmahon secured a three-year extension for its mining services at the Byerwen coking coal mine in the Bowen Basin in Queensland, Australia.
