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Macmahon inks new Dawson South contract

macmahon dawson south

Macmahon Holdings has been reappointed as the mining contractor of Anglo American’s Dawson South project in the Bowen Basin region of Queensland.

The Dawson South project forms part of the Dawson coal mine located 180km west of Gladstone. Macmahon first became Anglo American’s mining contractor at Dawson South in March 2021. This $200 million contract ended June 30.

Now, the mining contractor has been awarded a new three-year contract where Macmahon will continue providing open cut mining services to the project by utilising its current load and haul and equipment maintenance workforce.

The contract commences on July 1 and is expected to add about $130 million annually to Macmahon’s order book.

“We are delighted to be reappointed as mining contractor for the Dawson South project where we have worked to build an excellent relationship with our client,” Macmahon managing director and chief executive officer Michael Finnegan said.

In April, Macmahon sold a large amount of its remaining mobile equipment fleet at Dawson South. Finnegan said the sold equipment will continue to be used at the site under this new contact.

“I believe the new contract structure benefits our client, is aligned with Macmahon’s capital light strategy, and improves ROACE (return on average capital employed) performance, where we recently increased the target from 15 per cent to 20 per cent,” Finnegan said.

“I would like to thank the Macmahon team that has worked closely with Dawson mine to deliver this solution.”

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