21/10/2020 - 10:00

Macmahon in line for $250m contract

21/10/2020 - 10:00

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Perth-based Macmahon Holdings has been named the preferred contractor to provide equipment hire and maintenance services at a coalmine in Queensland.

Macmahon in line for $250m contract
Macmahon will maintain dump trucks and other ancillary equipment under the contract. Photo: Macmahon Holdings

Perth-based Macmahon Holdings has been named the preferred contractor to provide equipment hire and maintenance services at a coalmine in Queensland.

The Foxleigh mine is an open-cut, truck-and-excavator operation in the Bowen Basin.

It is a joint venture between Brisbane-based QMetco, which holds a 70 per cent project interest, Posco (20 per cent) and Nippon Steel (10 per cent).

If contracted, Macmahon will maintain 21 large capacity dump trucks and other ancillary equipment over a five-year term, as well as client-owned equipment.

Macmahon expects the contract will generate about $250 million in revenue.

The works will require about $50 million in capex, Macmahon says, the majority of which will go towards purchasing 220-tonne dump trucks.

Managing director Michael Finnegan said the contract highlighted Macmahon's expertise in maintaining large-scale mining equipment.

Macmahon shares were up 2 per cent to trade at 23 cents, as at 12:18pm AEDT.

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