Macmahon Holdings have won a ten year mining contract to develop the Tropicana Gold project.
Worth an estimated $900 million, the contract includes mine planning, drill and blast, load and haul, crusher feed and other associated works.
Head of Macmahon, Nick Bowen, said the contract was “a fantastic boost to the company and will provide a strong foundation for the surface mining business for the next decade”.
“Tropicana is an important contract for Macmahon, it increases the diversity of our operations and strengthens the long-term growth prospects of the company. It also increases our order book to a record $2.7 billion.”
AngloGold EVP Graham Ehm said the Tropicana Gold project is “very pleased Machmahon has fully embraced AngloGold’s new operating model, which provides the foundation for a close working relationship and continuous improvement in productivity and efficiency through a well-defined business framework”.
Infrastructure work will commence in the first quarter of next year, with mining operations to being in July 2012.
The project will employ up to 250 people, and will focus on indigenous subcontracting and employment.
Production will peak at an average of 60 million tonnes of ore and waste annually, a rate which is expected to be achieved about 12 months into operations.
Macmahon say it will invest $130 million for its mining fleet, minor equipment and infrastructure over three years, with a plan to use large hydraulic excavators and a fleet of 240 tonne capacity trucks.
The project, a joint venture between AngloGold Ashanti and the Independence Group, is located about 330 km north east of Kalgoorlie, on the edge of the Great Victoria Desert.