Macmahon Holdings says it has been selected by PT Masmindo Dwi Area (PT MDA), a subsidiary of PT Indika Energy, as the mining services contractor for the Awak Mas gold project in south Sulawesi, Indonesia.
The scope for Macmahon will include open-pit mining activities including drilling, loading, hauling and mine site development. The seven-year contract, with an option to extend for a further five years, is expected to commence in the first half of calendar year 2025 and will add
approximately A$463 million ($287 million) to Macmahon’s secured order book, the company says.
Key mining equipment required at commencement will be deployed from existing fleet with circa-A$17 million growth capital spread over the first four years. This spread of capital is included in the current growth capital target of A$30 million/y.
Macmahon CEO and Managing Director, Michael Finnegan, said: “We are delighted to be selected as the mining contractor for the Awak Mas gold project in Indonesia which presents a great landscape for us given our existing relationships. 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.
“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.”
