Macmahon gets BHP drilling contracts

Perth civil engineering firm Macmahon Holdings has mobilised the world’s most powerful raise drilling machine after securing a $5 million contract at BHP Billiton's Olympic Dam mine in South Australia. 

The state-of-the-art raise drill, known as the RBR 900VF, is capable of boring vertical shafts between three and eight metres in diameter and can reach a depth of up to 2,000 metres.

Macmahon designed the drill, in conjunction with German-based manufacturer Herrenknecht, to deliver improved productivity and greater levels of safety.

Macmahon chief executive officer Ross Carroll said he was thrilled to be deploying the drill at Olympic Dam, saying the increased level of automation significantly enhanced safety and generated greater efficiencies.

“The design of the new raise drill has eliminated most of the manual lifting, pushing and maneuvering efforts required by operators,” he said.

“This is a major step forward that will not only boost safety but also increase productivity.”

Meanwhile, Macmahon also announced that it had secured a four-year contract for ongoing raise drilling services at Olympic Dam, in which it will use up to five different raise drilling machines to raise bore about 5,000 metres of shafts per year. 

The contract is valued at about $35 million.

Mr Carroll said the contract highlighted the ongoing quality of Macmahon’s underground operations and reflected its long-term relationship with BHP Billiton. 

“Macmahon has been providing a range of underground services at Olympic Dam for the last 10 years,” he said. 

Macmahon last traded at 10.5 cents per share at 11:20am WST.