Seven-year Greenbushes contract worth more than $1 billion

Macmahon Holdings has announced it has finalised its load-and-haul services contract with Talison Lithium for the Greenbushes lithium project.

Macmahon Holdings has been contracted by Talison Lithium for the load and haul mining works at its Greenbushes lithium project in the southwest of Western Australia.

The project is a joint venture between Tianqi Lithium and IGO, and 49 per cent owned by Albemarle Corporation. Talison has been producing lithium concentrates at Greenbushes since 1983.

The Greenbushes project is a major supplier of lithium mineral concentrates. The scope of works includes open cut mining activities of load and haul, and crusher feed.

Subject to final documentation of certain in-principle agreed terms and signing within 30 days, the contract will commence on July 1, 2023 for a seven-year period and has an option to extend for up to two years. The contract is estimated to generate revenue in excess of $1.1 billion over its initial term.

Key mining equipment required for commencement will be from deployment of Macmahon’s existing available mining fleet with minimal impact to capital expenditure in FY23.

The maximum remaining capital expenditure required to support this project is spread from FY24 to FY28 (inclusive) and totals about $128 million.

Macmahon  managing director, Michael Finnegan said the award of the contract delivers on the company’s commodity diversification strategy into future relevant commodities.

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).
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