Macmahon wins $170m mining services contract with PT Agincourt Resources

11 November 2015 (Last Updated November 11th, 2015 18:30)

Macmahon has secured a $170m contract with PT Agincourt Resources to provide mining services at the Martabe gold mine located in Indonesia’s North Sumatran province.

Macmahon has secured a $170m contract with PT Agincourt Resources to provide mining services at the Martabe gold mine located in Indonesia's North Sumatran province.

Set to start next January, the contract will be delivered by Macmahon in a 50:50 joint venture (JV) with an Indonesian contractor.

The company was selected following a competitive tendering process that involved various mining contractors from Australia and Indonesia.

"This contract builds on Macmahon's strong track record of delivering safe, quality mining operations in the region."

Under the terms of the five-year contract, the JV will provide services that relate to mining and bulk earthworks.

The services include drilling and blasting, mining of waste materials, equipment hire and subcontractor management across three operating areas. Material will also be placed on the tailings storage facility embankments.

The company said it will also undertake pioneering works associated with access to new open pit mining areas.

Macmahon CEO Sy van Dyk said: "This contract builds on Macmahon's strong track record of delivering safe, quality mining operations in the region and provides a solid foundation from which we can continue to grow our presence."

In addition, Newcrest Operations awarded a contract to Macmahon to undertake contract mining services at its Telfer gold-copper mine in the East Pilbara region of Western Australia.

Under the contract, the company will provide similar mining and bulk earthworks related services. Newcrest will provide diesel and explosives.

Macmahon is expected to move on average 35 million tonnes of material a year from the two open pits, generating annual revenues of approximately $62m.

Operations at the mine are slated to begin next February.