Macmahon Holdings wins $250m mining contract on Mt Morgans gold mine

Dacian Gold has awarded Macmahon Holdings a $250 million contract to deliver works at Mt Morgans gold project’s Jupiter open pit in Western Australia.

Dacian Gold plans to commence open pit mining at Mt Morgans before the year ends, and the first ore will be mined from the Heffernans Hill area that was previously cleared and is now undergoing grade control drilling.

“Project construction is progressing rapidly, with the carbon-in-leach (CIL) treatment plant now over 75 per cent complete, underground mining 743 metres ahead of schedule and eight drilling rigs operating around the site.

“And now we have secured Macmahon as the open pit mining contractor, with mining at Heffernans to start this month,” Dacian Gold Chairman Rohan Williams said.

Macmahon’s mining services agreement is the final contract to be awarded before production is launched in March of next year at Mt Morgans gold operation.

Scope of works under the five-year contract include drilling and blasting as well as loading, hauling and technical services. A 31-month extension option following the initial period is also included in the contract awarded to Macmahon.

“To receive this letter is extremely gratifying and we look forward to delivering this project for the benefit of both parties.

“Throughout the tender process we have built a trusted relationship with Dacian Gold, and [today’s] announcement is a testament of the value-driven proposition that Macmahon has been able to offer,” Macmahon Chief Executive Officer Michael Finnegan said.

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Source: Australian Mining