Macmahon welcomes $600m in mine cutbacks

Macmahon

Image: Macmahon

Macmahon has welcomed the commissioning of significant bodies of work in 2021, as both the Tropicana and Telfer gold mines undergo mine-altering cutbacks.

Macmahon has provided open cut mining services since mid-2012 at the Tropicana mine – a joint venture between AngloGold Ashanti Australia (70 per cent and operator) and Regis Resources (30 per cent).

As a result of the upcoming cutback at Tropicana, Macmahon can add $470 million to its books, with works to take place from 2023 to 2027.

The job will add 155 million tonnes of material to be mined at Tropicana’s Havana ore body from 2024.

At Newcrest’s wholly owned Telfer gold mine, 400 kilometres east of Port Hedland, the Tier 1 miner announced a cutback to its West Dome stage five ore body in mid-August.

This scope of work should generate around $138 million in revenue for Macmahon as undertakes the job until September 2024.

The investment will cost Newcrest $246 million as it ensures operations continue for at least the next two years at Telfer.

On the additions to Macmahon’s order book, chief executive officer and managing director Michael Finnegan said Tropicana was a shining light for the company.

“We are pleased to have secured this additional work which adds approximately $600 million to our order book,” Finnergan said.

“A key highlight is the extension of our long-term alliance contract at Tropicana, which has been a cornerstone of our surface mining business in Western Australia for many years and has recently expanded into underground mining.

“Today’s announcement is another demonstration of our broad capabilities and the potential in our business for continued growth.”

 

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