Macmahon Holdings (ASX:MAH) has secured a 20-month contract extension to begin on 1 November 2023 at the Byerwen coking coal mine in Bowen Basin in Queensland.
The contract extension is expected to generate about $440 million in revenue over the extension period. The company says this will add to the company’s secured order book, increasing total work won in FY 2023 to about $2 billion, including the uniquely structured Batu Hijau contract that shareholders approved on 27 March.
Commenting on the contract extension, Macmahon Chief Executive Officer (CEO) and Managing Director Michael Finnegan says: “Importantly, this extension will allow us to provide our workforce with certainty of increased tenure.
Byerwen Coal has been an excellent partner reflecting the success and strength of our relationship that has been built on the foundation of operational delivery over several years.”
“Importantly, this extension will allow us to provide our workforce with certainty of increased tenure”
Since the establishment of the Breywen mine in 2017, Macmahon has been delivering open-cut mining services to the project, as well as employing more than 520 people on site.
The mine is owned by Byerwen Coal, which is a joint venture between privately held QCoal Group which owns an 85% stake, and Japanese steel manufacturer JFE Steel (TYO:5411), which owns a 15% stake.
Macmahon is an ASX-listed company, offering mining services to miners throughout Australia and Southeast Asia. The company’s ‘extensive’ experience in both surface and underground mining has established Macmahon as the contractor of choice for resource projects across a range of locations and commodity sectors.
Images: Macmahon Holdings Ltd
