Macmahon Holdings has been appointed as the underground mining services contractor at the Poboya gold project in Sulawesi, Indonesia, with the interim contract taking effect immediately.
Poboya is owned by PT Citra Palu Minerals (CPM), a PT Bumi Resources Minerals Tbk subsidiary. Macmahon currently provides open-cut mining services to the project.
Under the contract, Macmahon will provide works such as underground mining development, ore mining activities, drilling, loading, hauling, equipment maintenance and mine services support.
CPM will supply all major capital equipment and infrastructure for Poboya.
“We are delighted to continue working with CPM on the next stage of the Poboya gold project which will see us expanding our services to include both surface and underground,” Macmahon managing director and chief executive officer Michael Finnegan said.
“We look forward to building on our valued relationship and are focused on growing the Poboya asset while continuing to drive safety and performance outcomes for our client.”
The interim contract will remain on foot under a cost-plus arrangement until Macmahon and CPM can finalise and execute a five-year, alliance style, underground mining services contract.
The contract’s value has not been determined as of yet, but it is expected to add approximately $317 million to Macmahon’s orderbook.
In other Macmahon news, the diversified contractor delivered $1.2 billion in revenue for the six months ending December 31 2024, a 22 per cent increase from the prior corresponding period.
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