Macmahon inks $463 million contract

Macmahon has been selected as the mining services contractor for the Awak Mas gold project located in South Sulawesi, Indonesia.

The company’s scope will include open-cut mining activities such as drilling, loading, hauling and mine site development.

With an option to extend for a further five years, the seven-year contract is expected to commence in the first half of 2025 and is valued at approximately $463 million.

Macmahon was selected by PT Masmindo Dwi Area (MDA), a subsidiary of PT Indika Energy, who is dedicated to becoming Indonesia’s next gold producer through Awak Mas’ development.

Macmahon chief executive officer and managing director Michael Finnegan said the company was delighted by the new contract.

“This project will add to our secured work in hand, and we are pleased to have negotiated a low capital solution utilising existing fleet and variable leases,” he said.

“I would like to thank the Macmahon team who have worked closely with PT MDA over the last 12 months to build a strong relationship which I am confident we will continue to build on.”

Macmahon will deploy existing equipment to commence the contract, with about $17 million of growth capital expected over the first four years.

The Awak Mas contract furthers Macmahon’s growth in Indonesia, where the company also holds contracts at the Poboya gold mine in Central Sulawesi, the Batu Hijau copper-gold mine in Sumbawa and the Martabe gold mine in North Sumatra.

Macmahon’s key Australian contracts include work at BHP’s Olympic Dam operation in South Australia, the Tropicana gold operation in WA and the Greenbushes lithium mine, among others.

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