Macmahon wins $1.1bn lithium contract

Macmahon Holdings has cited the credentials of Greenbushes’ ‘long-term and loyal workforce’ in preparing a team to deliver on a $1.1 billion contract it has won with Talison Lithium.

The contractor received a notice of award for a new seven-year contract from the joint venture between Tianqi Lithium and IGO, Talison Lithium, for work on the Greenbushes lithium project, considered one of the largest hard rock lithium mines in the world.

Scope of work under the contract includes open-cut mining activities of load and haul, and crusher feed, and is expected to bring in revenue of $1.1 billion in the period.

It also comes with a two-year option to extend, which could mean its workforce is stationed at the site through to the next decade. 

Obtaining and paying for skilled staff has been a headache for contractors in the past 12 months.

Nevertheless, Macmahon was able to grow its workforce by 11 per cent to 7,848  employees during the latest financial year and today said it was keen to engage with the existing workforce in the Greenbushes area to put together a world-class team for the project.

“The Greenbushes project is in an attractive location, has an existing long-term and loyal workforce with many based in the area,” Macmahon said in a statement.

“We are eager to engage with them and other people to discuss employment opportunities on the project to build a world-class team.

“Engaging with the on-site team is a priority for us upon award given the high level of performance we have noted on the project.”

Macmahon said the mining equipment needed to start work would be deployed from its existing available fleet.

It estimated a maximum cost of $128 million between FY24 and FY28 to support the project. 

Macmahon is expected to start work under the contract on July 1 next year.

Macmahon chief executive Michael Finnegan said the contract award strengthened the company’s foundations.

“The award of this contract delivers on our commodity diversification strategy into future relevant commodities,” he said.

“I would also like to thank the Macmahon team for their efforts in achieving this project award which adds to our secured order book and goes a long way to replenishing FY23 secured work run-off.”

On the market, Macmahon shares were up 7.14 per cent to trade at 15 cents.