30/03/2021 - 13:00

Macmahon in line for $200m Qld contract

30/03/2021 - 13:00

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Perth-based Macmahon Holdings has been named preferred mining contractor for Anglo American's Dawson coal operations in Queensland.

Macmahon in line for $200m Qld contract
Macmahon is first in line to provide mining services to Anglo American's Dawson South open pit. Photo: Macmahon Holdings

Perth-based Macmahon Holdings has been named preferred mining contractor for Anglo American's Dawson coal operations in Queensland.

If contracted, Macmahon will provide surface mining works at Dawson South – one of three open pits at the larger Dawson mine – under a three-year agreement valued at about $200 million.

The Dawson mine is a joint venture between Anglo American and Japan’s Mitsui & Co

Macmahon expects to finalise a mining services agreement in the near future, with contracted works to begin in July.

Managing director Michael Finnegan said the contract with Anglo American, which has a 51 per cent stake in Dawson, would strengthen Macmahon’s growing east coast presence.

“We look forward to working very closely with our new client to ensure a smooth transition period and continuity of safe operations,” he said.

It adds to a string of contract announcements for the Perth business, which has also been named as the preferred mining contractor for Red 5 and St Barbara’s gold projects in Western Australia. 

Those contracts, in addition to a recent four-year mining agreement with Silver Lake Resources, are expected to add about $1.4 billion to Macmahon’s order book.

Shares in Macmahon closed down 2.4 per cent to trade at 20 cents.

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