09/12/2020 - 11:30

Macmahon wins $270m in mining work

09/12/2020 - 11:30

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ASX-listed Macmahon Holdings has secured a $250 million mining contract in Queensland and gained a $20 million extension in works in WA.

Macmahon has received $270 million in mining work in WA and Queensland. Photo: Supplied

ASX-listed Macmahon Holdings has secured a $250 million mining contract in Queensland and gained a $20 million extension in works in Western Australia.

In October, Macmahon was named preferred contractor for works on the open-cut Foxleigh coalmine in Queensland, which includes equipment hire and maintenance services.

The operations are run by a joint venture between Brisbane-based QMetco, with a 70 per cent stake in Foxleigh, Posco (20 per cent) and Nippon Steel (10 per cent).

Macmahon has been tasked with maintaining 21 large capacity dump trucks and other ancillary equipment, as well as client-owned equipment over a five-year term.

Works on the project will begin in March.

Managing director Michael Finnegan said the formal contract award expanded Macmahon’s east coast presence.

At the same time, the company has received a contract extension from Perth-based Pantoro for work on two gold operations in WA.

The contract, awarded to Macmahon subsidiary GBF, has been extended until October 2023.

“The contract extension is another important step in our strategy to further expand in the underground market and we remain very well placed to continue growing our underground business,” Mr Finnegan said.

Macmahon is servicing Pantoro’s Wagtail and Nicolsons underground goldmines, near Halls Creek.

The contractor's shares were up 4 per cent at 2:18pm AEDT, to trade at 27 cents.

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