Mining services company Macmahon Holdings (ASX:MAH) reports it has finalised a $1.1 billion load and haul services contract with privately owned lithium minerals concentrate producer Talison Lithium Australia.
The contract involves open-cut mining activities of load and haul, as well as crusher feed at Talison’s Greenbushes Lithium Project in Western Australia for 7 years with an option to extend for up to 2 years.
Macmahon expects the contract will generate in excess of $1.1 billion in revenue over the initial 7-year term.
Commenting on the contract, Macmahon Chief Executive Officer (CEO) and Managing Director Michael Finnegan says: “We are delighted to finalise this contract with Talison Lithium for its Greenbushes lithium project.
“This contract will add approximately $1.1 billion to our order book, which delivers on our commodity diversification strategy into future relevant commodities”
This contract will add approximately $1.1 billion to our order book, which delivers on our commodity diversification strategy into future relevant commodities.
We have built a strong relationship with the Talison Lithium team and look forward to developing this project with them.”
Macmahon reports it was selected as the preferred load and haul contractor after receiving a Notice of Award from Talison in November 2022.
Macmahon Holdings is an ASX-listed mining services company operating throughout Australia and Southeast Asia. The company says it has ‘extensive’ experience in surface and underground mining.
Surface services offered by the company include drilling and blasting, bulk and selective mining, plant hire, tailings dam construction, business improvement consulting, mine management, load and haul, plant maintenance, and rehabilitation.
Below the surface, Macmahon offers services such as underground production, raise drilling, shaft sinking and lining, shotcreting, and cable bolting.
In the mine services sector, the company can provide topsoil and overburden stripping, bulk earthworks, water infrastructure, dam construction, and mine rehabilitation, as well as LV and HV road design, construction, and maintenance.
Talison is a lithium minerals concentrate producer, supplying product for the clean energy revolution. It is owned under a joint venture arrangement with Tianqi Lithium Corporation / IGO Limited JV (51%) and Albemarle Corporation (49%).
Talison and its predecessor companies have been producing lithium at Greenbushes since 1983 in an area recognised as containing the world’s highest grade and largest hard rock deposit of the lithium mineral spodumene. Greenbushes is also the longest continuously operated mining area in Western Australia.
Images: Macmahon Holdings Ltd
