Macmahon secures $900m contract extension for Byerwen mine operations
Macmahon Holdings Limited has announced that it has secured a new contract to extend its operations for another three years at the Byerwen coking coal mine in Queensland.
The company has been providing open cut mining services at the Byerwen site since 2017, with works including load and haul as well as crusher and feed. Macmahon, through these works, has been providing employment to more than 800 people.
The $900 million contract extension will be executed from October 2025. However, it is still subject to final documentation of certain in-principle agreed terms which will be finalised before 30 September 2025.
The existing workforce and mining fleet are already deployed and operational at the Byerwen site and no new capital expenditure is required beyond the company’s sustaining capital budgets.
“We are very pleased to continue as the mining contractor at Byerwen where we have worked closely with the team since the mine commenced operations in 2017. We 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 8 years. The teams are grateful and excited that they will have the opportunity to continue to develop that relationship on site and corporately. I would like to thank the Byerwen Coal and Macmahon teams for their continued dedication and support and look forward to finalising the contract,” Macmahon Holdings Managing Director and CEO Michael Finnegan said.
The Byerwen coking coal mine is owned by Byerwen Coal Pty Ltd, a joint venture between QCoal Group and Japanese steel manufacturer JFE Steel.
The Byerwen mine is located within the Bowen Basin, approximately 20 kilometres west of Glenden. The open cut mine has a production rate of up to 10 million tonnes per annum (Mtpa) of hard coking coal, and it has a 25-year mine life (until 2040).
Source: Macmahon Holdings; Australian Mining; QCoal
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