Macmahon wins four year Argyle development contract

Rio Tinto subsidiary Argyle Diamonds Ltd has appointed Welshpool-based Macmahon Holdings Ltd as the preferred contractor for the second phase of works at its underground Argyle Diamond Mine.

The full text of a Macmahon announcement is pasted below

Macmahon Holdings Ltd announced today that Argyle Diamonds Ltd, a subsidiary of Rio Tinto, has selected Macmahon as the preferred contractor for Phase 2 of the underground development works at the Argyle Diamond Mine in the Kimberley region of Western Australia.

The four year contact will involve around 30 kilometres of underground development, including the major elements associated with the establishment of the new block cave mine. Other key works include the excavation of two underground crusher chambers, vertical development and initial cave draw production.

This project, which is considered to be the largest underground mine development currently being undertaken in Australia, will require a workforce of approximately 200 people.

Macmahon and Argyle Diamonds expect to finalise documentation for the contract in the near future with works scheduled to commence in November.

"Our extensive underground experience, combined with the additional services we can provide via ARD and CRE, places Macmahon in a strong position to deliver a complete range of services on this major underground infrastructure project," Macmahon Chief Executive Officer, Nick Bowen, said.

"We are looking forward to working closely with Argyle Diamonds to deliver this significant contract safely, on time and on budget.

"As part of the contract Macmahon is committed to working with Argyle Diamonds to maximise indigenous employment in the East Kimberley.

"This contract will see a continuation of our successful association with Argyle that stretches back to the early 1990s," Mr Bowen said.