Macmahon Holdings (ASX:MAH) has been selected by PT Bumi Resources Minerals’ (IDX:BRMS) subsidiary PT Citra Palu Minerals, as the underground mining services contractor at the Poboya Gold Project in Indonesia.
Under the interim scope of works, Macmahon will provide all underground mining development and ore mining activities including drilling, loading, hauling, equipment maintenance and mine services support.
The full contract value is still to be determined, but is expected to add $317 million to Macmahon’s orderbook.
Macmahon, which has a market capitalisation of $603.39 million, will begin work immediately and remain under a cost-plus arrangement until both companies execute and finalise an alliance-style, underground mining contract for five years.
CEO Michael Finnegan says the company will be expanding its services to include surface and underground mining.
Macmahon is a mining and civil infrastructure services provider that offers its services throughout Australia and Southeast Asia.
Write to Aaliyah Rogan at Mining.com.au
Images: Macmahon
