Macmahon secures $352m contract extension

Local contractor Macmahon Holdings has notched a $352 million three-year extension to its mining services contract with AngloGold Ashanti over a project in WA.

The Perth Airport-located contractor will continue to provide mining services for the Boston Shaker underground mine, which is part of the Tropicana gold operation 330 kilometres northeast of Kalgoorlie.

The major gold asset is a joint venture between operator AngloGold and Regis Resources, split 70 per cent and 30 per cent, respectively.

Macmahon has been engaged at the project since 2019, and said it was pleased to continue the execute of the scope of services including mine development, production drilling, cable bolting and ore storing.

The contract is expected generate revenue of $117 million annually.

Managing director Michael Finnegan said the contract extension was a critical step toward growing its underground portfolio by 50 per cent over the next two to three years.