Macmahon (ASX:MAH) is expected to add $900 million to its secured orderbook after receiving a notice of award for a three-year extension at the Byerwen coking coal mine in Queensland’s Bowen Basin.
Macmahon has been providing open cut mining services, including load and haul, and crusher feed, at Byerwen since the establishment of the mine in 2017 and provides employment to over 800 people on site.
The mine is owned by Byerwen Coal – a joint venture between QCoal Group and Japanese steel manufacturer JFE Steel. The contract extension is a continuation of services from October 2025 and is subject to final documentation of certain in-principle agreed terms which are intended to be finalised prior to 30 September 2025.
As Macmahon already has its people and mining fleet deployed and operating at Byerwen, no new capital expenditure is required beyond the sustaining capital budgets.
CEO Michael Finnegan says Macmahon will continue to refine the terms and conditions over the next few months with a focus on mutually beneficial outcomes that will enhance operational efficiencies on site.
“The QCoal relationship and Byerwen project have been key to the Macmahon business stabilising over the last eight years,” the CEO says.
“The teams are grateful and excited that they will have the opportunity to continue to develop that relationship on site and corporately.”
Part of Queensland’s rich Bowen Basin, the Byerwen Mine is located 45 minutes west of Glenden. The open-cut mine will produce up to 10 million tonnes of hard coking coal per year.
Byerwen Mine was granted the mining leases for the project in May 2017. Mining operations have started, and construction of the stage one coal handling and preparation plant is complete.
Write to Adam Orlando at Mining.com.au
Images: Byerwen
