Macmahon Holdings is extending its operations at the Byerwen coking coal mine in Queensland as the company secures a three-year contract extension – valued at $700 million – with an option to extend a further two years.
In addition, Macmahon Holdings will be expanding its fleet, spending about $16 million on ancillary equipment and $37 million to procure two additional 800-tonne hydraulic excavators for the project.
“We are very pleased to have secured this expansion and extension at Byerwen, which is one of our cornerstone projects in Australia. Byerwen Coal is an excellent partner and the project has been very successful since its inception. We look forward to continuing to work with our client on the development of this premium asset,” Macmahon Holdings CEO and Managing Director Michael Finnegan said.
Macmahon Holdings has been in operation at the Byerwen mine since it was established in 2017, providing open cut mining services and employing up to 430 people to undertake works on site.
This contract extension will be in effect from 1 June 2020 until 1 November 2023 and will significantly increase production at the mine to 10Mtpa of hard coking coal.
“The development of the Byerwen project is a great success story for the industry, with the mine now emerging as a very low cost producer of hard coking coal. I am very proud that this expansion will enable us to further contribute to the Queensland economy with additional local employment and opportunities for regional communities,” QCoal Group Managing Director Christopher Wallin said.
The Byerwen coking coal mine – locate in the Bowen Basin, about 20 kilometres west of Glenden – is owed by Byerwen Coal Pty Ltd which is a joint venture between QCoal Group and Japanese steel company JFE Steel.
Coal from the mine is transported to the Abbot Point Coal Terminal for export.
Want to receive the latest industry news and project updates straight to your inbox? Subscribe to Felix Project News today.
Source: Macmahon Holdings; QCoal Group; Australian Mining; International Mining