Macmahon locks in $350m Queensland coal contract

Contractor Macmahon has executed a $350 million mining services contract at the Byerwen coal mine in the Bowen Basin of Queensland.

Perth-based Macmahon was named as the preferred contractor for the three-year contract in April this year. The mine is majority owned by QCoal Group.

The contract involves the provision of all open cut mining and bulk earthworks at the new mine near Glenden.

Macmahon has already been operating under a preliminary works agreement at the site and has made good progress since launching operations in August.

The contract signals a return to the Queensland mining industry for Macmahon. Previously, the company completed contracts at Cameby Downs in 2013 and Eaglefield in 2014.

Macmahon chief executive Michael Finnegan previously said the company was “very encouraged” to be selected for the Byerwen mine contract.

“This is a quality project which will deliver significant benefits to the local and state economy,” Finnegan said.