Macmahon to mine Tropicana for $900m

Mining contractor Macmahon Holdings has won a ten-year, $900 million mining contract for the Tropicana gold joint venture between AngloGold Ashanti and Independence Group.

The contract takes Macmahon's order book to a record $2.7 billion, chief executive Nick Bowen said.

Macmahon expects to employ up to 250 people for Tropicana, which will reach a production capacity of around 60 million tonnes each year about 12 months into operations.

Macmahon will spend $130 million over the next three years on expanding its mining fleet to perform the works.

"Tropicana is an important contract for Macmahon, it increases the diversity of our operations and strengthens the long-term growth prospects of the company," Mr Bowen said.

Anglogold Ashanti Australia executive vice president Graham Ehm said the joint venture welcomed the long-term relationship with Macmahon.

"We are very pleased that Macmahon has fully embraced AngloGold Ashanti's ne operating model, which provides the foundation for a close working relationship and continuous improvement in productivity and efficiency through a well-defined business framework," Mr Ehm said.

Macmahon will begin mining operations in July next year.

Its stock was steady today at $0.54.