Macmahon wins $440m contract extension

Perth-based Macmahon Holdings has secured a contract extension valued at $440 million for its mining services at a coal operation in Queensland.

Byerwen Coal, joint ventre between QCoal Group and Japanese manufacturer JFE Steel, awarded Macmahon a 20-month extension for open-cut mining services at the Byerwen coking coal mine.

Macmahon has been providing its services to the Bowen Basin located operation since it was established in 2017.

Managing director Michael Finnegan said the company was pleased to continue its ongoing relationship with Byerwen Coal.

“Importantly, this extension allows us to provide our workforce with certainty of increased tenure,” he said.

“Byerwen Coal has been an excellent partner reflecting the success and strength of our relationships that has been built on the foundation of operational delivery over several years.”

The $440 million worth of work over the contract period will take Macmahon’s 2023 financial year order book to about $2 billion.

In February, Macmahon struck a renegotiates contract extension with Amman Mineral for work on its Indonesian copper and goldmine.

Under the new deal, Macmahon will continue work as the head contractor at Amman Mineral Nusa Tenggara’s Batu Hijau mine in Indonesia until 2028.

The contractor anticipates its profits will be higher due to increased capital return on investment and the opportunity to earn annual performance fees.

On the ASX, Macmahon shares were up 3.85 per cent to 14 cents at 4.10PM AEDT.