Macmahon wins Newcrest work

Macmahon Holdings has won a contract at Newcrest Mining’s Telfer gold project in the Pilbara, which is expected to bring in $62 million in annual revenue.

Under the contract, Macmahon will provide open pit mining and bulk earthworks, and related services including drill, blast, mining of waste materials, equipment hire and subcontractor management.

The contractor will utilise Newcrest’s existing equipment fleet at Telfer.

It’s good news for the company’s shareholders, who were told last week that Macmahon would suffer a large fall in revenue in the 2016 financial year.

“Given the rolling nature of this contract to 2022, establishing a trusted relationship has been a priority for both parties,” newly-appointed Macmahon chief executive Sybrandt van Dyk said.

“[The contract announcement] is a testament to the service proposition that Macmahon has been able to provide.”

Work is scheduled to begin in February.

It follows news earlier this week that a class action against Macmahon had been filed on behalf of its shareholders, over the company’s alleged delay in revealing information about problems with a major infrastructure project three years ago.

Macmahon shares were 1 per cent higher to 9.4 cents each at 10:30am.