Macmahon to take over from Newcrest at Telfer gold mine

Macmahon Holdings will pick up service operations at Telfer gold mine from owner and present operator, Newcrest Mining.

A new rolling contract until 2022 was announced this morning, to commence in February 2016, which will see Macmahon provide the full scope of services for open pit mining and bulk earthworks, including drill and blast, mining waste materials, equipment hire and subcontracting.

A statement from Macmahon said Newcrest will continue to supply diesel and explosives.

Macmahon is expected to move 35 million tonnes of material each year from the tow operating pits, worth an average of $62 million in annual revenue to the services contractor.

Macmahon said capital investment would be minimal as the company would operate Newcrest’s existing fleet of equipment.

Macmahon CEO Sy van Dyk said he was excited that the services contractor had been awarded the contract to operate the large scale gold asset.

“Given the rolling nature of this contract until 2022, establishing a trusted relationship has been a key priority for both parties, and today’s announcement is a testament to the service proposition that Macmahon has been able to provide,” he said.

“We look forward to building on the positive and collaborative relationship already formed with Newcrest, and delivering lasting benefits for all stakeholders during the course of this contract.”

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