Mining services provider Macmahon Holdings will sell a large amount of its remaining mobile equipment fleet at the Dawson South project in the Bowen Basin region of Queensland.
The sale is expected to result in about $44 million of net cash inflows for Macmahon to collect during the 2023–24 and 2024–25 financial years.
“I’m pleased we have been able to sell a substantial portion of the Dawson South fleet and progress Macmahon’s capital light strategy to improve ROACE (return on average capital employed) performance – where our target was recently increased from 15 per cent to 20 per cent,” Macmahon managing director and chief executive officer Michael Finnegan said.
“I would like to thank the Macmahon team who have worked closely with our client to deliver this solution.”
The Dawson South project forms part of Anglo American’s Dawson South open cut metallurgical coal mine.
Macmahon became Anglo American’s mining contractor at the Dawson South project in March 2021. This existing contract is due to end on June 30 2024.
Both companies are currently negotiating the terms of the new contract, which is expected to commence on or before July 1 2024. Macmahon expects to retain its workforce of about 210 employees.
“No new capital expenditure is expected over the new term due to the divestment of a large portion of the Dawson South equipment fleet, which will be utilised on the project,” the company said.
Macmahon officially acquired mining services specialist Pit N Portal from independent mining equipment rental business Emeco in February. The deal was first announced in December 2023.
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