Engineering contractor Macmahon Holdings has secured the status of ‘preferred tenderer’ to provide equipment hire and maintenance services at the Foxleigh joint venture project in Queensland.

The Foxleigh mine is an open cut operation in the Bowen Basin. It produces low volatile PCI coal for Asian steel mill customers.

It is located 12km south of Middlemount and 272km northwest of Rockhampton.

The proposed work scope of Macmahon involves the hire and maintenance of 21 large capacity dump trucks as well as ancillary equipment over a five-year period.

Macmahon will also provide maintenance to client equipment at the Foxleigh site, which is jointly owned and operated by QMetco, POSCO Australia and Nippon Steel Australia.

The contract is estimated to generate around $250m in revenue for Macmahon and requires a capital expenditure of approximately $50m.

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According to Macmahon, the majority of the cost falls on the acquisition of 220t dump trucks with an expected life of ten years.

Macmahon Holdings CEO and managing director Michael Finnegan said: “We are very pleased to be selected as the preferred equipment and maintenance provider for the Foxleigh project, and we are looking forward to delivering for a new client in Queensland.

“This selection highlights our expertise in sourcing and maintaining large scale mining equipment and our ability to offer a range of service models to our clients.”

In August, Macmahon Holdings secured an approximately $23m contract to provide services for mineral exploration firm Strandline Resources at the Coburn mineral sands project in Western Australia.