25/06/2008 - 10:16

Macmahon extends contract for $100m

25/06/2008 - 10:16

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Perth engineering company Macmahon Holdings Ltd has negotiated a $100 million extension to a contract with BMA Coal Operations, which owns and operates the Saraji coal mine in Queensland.

Macmahon extends contract for $100m

Perth engineering company Macmahon Holdings Ltd has negotiated a $100 million extension to a contract with BMA Coal Operations, which owns and operates the Saraji coal mine in Queensland.

The original contract covered two years with a total value of $75 million and Macmahon has currently completed the first year of this contract. This extension involves the removal of additional material over the next two years [which equates to a one year extension on the original contract] and represents an increase of more than $100 million on the original contract value.

Macmahon currently has a workforce of 200 personnel at the site and operates a fleet of four excavators and trucks. The extension of contract will result in the excavators being upgraded to larger sized units and the addition of four new trucks.

Chief Executive Officer, Nick Bowen, is pleased that Macmahon has been able to deliver additional value to the customer through its strong performance at this mine.

"We are very proud of our capacity to deliver outstanding outcomes for valued customers such as BMA and this extension is a great example of how we can maximise the value for the mine" he said.

"Macmahon has a number of coal contracts on the east coast of Australia and we continue to look for opportunities to build our market share in this buoyant sector."

Moving into the 2009 financial year, Macmahon's order book will stand at more than $2 billion, reflecting the benefits of excellent long term relationships with major blue chip private sector and government customers across the mining and construction sectors.

Macmahon has launched a hostile takeover offer for Ausdrill Ltd, offering 1.45 of its shares for one Ausdrill share.

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