12/07/2017 - 15:50

Macmahon shareholders approve AMNT deal

12/07/2017 - 15:50

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Macmahon Holdings chairman Jim Walker said the contract miner would focus on executing its growth plans after shareholders voted overwhelmingly today in support of a tie-up with Indonesian company PT Amman Mineral Nusa Tenggara (AMNT).

Macmahon shareholders approve AMNT deal
Macmahon Holdings chairman Jim Walker. Photo: Attila Csaszar

Macmahon Holdings chairman Jim Walker said the contract miner would focus on executing its growth plans after shareholders voted overwhelmingly in support of a tie-up with Indonesian company PT Amman Mineral Nusa Tenggara (AMNT).

“Once today is finished, what follows is execution of all this work,” Mr Walker told Business News after the shareholder vote.

The shareholder vote comes one week after hostile bidder Cimic Group sold its 23 per cent stake in Macmahon.

“We’re happy its worked out that way, its cleaner, and made it easier for us to move forward,” Mr Walker added.

Chief executive Michael Finnegan said the company’s staff had responded positively to the challenges they had faced and this put them in good stead for the future.

“In situations like this, people are taken onto unusual duties, but the team stood up,” Mr Finnegan said.

“They’ve got a bounce in their step, they are energetic and motivated.

“I actually think it will put us in a better position because its increased our depth.”

AMNT is set to become a 44 per cent shareholder in Macmahon, which will secure extra work at the Indonesian group’s Batu Hijau copper-gold mine.

Mr Finnegan said the analogy he used was that Macmahon has just finished a long pre-season and was about to enter the main season.

“It’s all about execution and delivering on what we’ve committed to,” he said.

“The strategy is quite simple – executing on new and existing work, maintain the pipeline and existing relationships, keep corporate overheads skinny, and continue the innovation and technology strategy,

Mr Walker said he and Mr Finnegan were both familiar with the Batu Hijau mine.

“It was a mine that was held in high regard in terms of its safety culture and its performance, so it was always on our list to see if we could work there.”

Mr Finnegan said Macmahon has been in discussions with AMNT since about February 2015 regarding contracting opportunities.

Those discussions remained tentative until November 2016 when AMNT completed the purchase of the mine from Newmont.

The discussions subsequently broadened into AMNT taking a major stake in Macmahon, which strengthened the Perth company’s defences against Cimic’s hostile bid.

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