Macmahon wins $700m contract

Mining contractor Macmahon Holdings has secured $700 million in work with Byerwen Coal for services at the company’s mine in Queensland.

Macmahon has provided services at the mine, located in the Bowen Basin, since its establishment in November 2017.

The contractor has been tasked with expanding production to 10 million tonnes of hard coking coal per annum until November 2023.

Macmahon says there is an option to extend the contract by a further two years, which could generate revenue of more than $1 billion.

It expects to spend $16 million on equipment to carry out the expansion works, while also procuring two additional 800-tonne hydraulic excavators worth $37 million.

Macmahon chief executive Michael Finnegan said Byerwen was one of the company’s cornerstone projects in Australia.

“Byerwen Coal is an excellent partner and the project has been very successful since its inception,” he said.

Managing director of QCoal Group – which owns Byerwen Coal – Christopher Wallin said the project was a great success story for the industry.

“The mine is now emerging as a very low cost producer of hard coking coal,” he said.

“I am very proud that this expansion will enable us to further contribute to the Queensland economy with additional local employment and opportunities for regional communities.”

Shares in Macmahon closed up 1.9 per cent to trade at 27 cents.