New contracts worth $172m awarded to Macmahon for mining works in WA

Macmahon Holdings Limited has announced that it has secured two mining contracts in Western Australia, growing its order book by $172 million. 

In the southern Murchison region, Macmahon will deliver underground mining services at the Deflector Underground Gold Copper Mine. 

The $105 million contract includes all underground and mine development as well as production services alongside all other associated works. 

Contract execution will begin 1 May 2025 and will run for a period of two years, with a possible extension by agreement. 

Macmahon already has a workforce and mining fleet deployed and operational at the Deflector mine, and there is no significant capital expenditure needed beyond sustaining capital expenditure. The company has been the mining contractor at the Deflector mine since 2021. 

The Deflector operations is located about 450 kilometres north of Perth and 160 kilometres east of Geraldton. 

“We are very pleased to have been awarded an underground mining services contract at Deflector where we have worked closely with the Vault team over several years. Macmahon values our relationship and are excited to continue building on this. I would like to thank the Vault and Macmahon teams for their continued dedication and look forward to continuing to support the development of the Deflector operation,” Macmahon Holdings Managing Director and CEO Michael Finnegan said. 

Meanwhile, Macmahon has been appointed by Genesis Minerals Limited as the mining contractor for the Gwalia and Ulysses Gold Projects in the Leonora region. 

Macmahon has been working at the Gwalia mine since 2021, however its existing contract has been terminated by mutual consent and the parties have entered into a new contract term that covers both Gwalia and Ulysses operations. 

The scope of the new contract includes all underground and mine development and production services as well as all other associated works at the two projects. 

The $67 million contract will be executed over a 13-month period starting April 2025. 

The Gwalia Gold Mine is located a few kilometres south of Leonora and it is one of Australia’s oldest underground gold mines that was originally established in 1897. The Ulysses Gold Mine, on the other hand, is located about 30 kilometres south of Leonora and the Gwalia mine, and 200 kilometres north of Kalgoorlie. 

“We are delighted to continue as the mining contractor for Genesis at the Gwalia and Ulysses gold projects, both key assets in Genesis’ strategic growth plans for the Leonora region. We look forward to supporting Genesis and I am confident we will continue to build on our strong relationship,” Mr Finnegan said. 

Source: Macmahon Holdings Limited (1, 2, 3); Australian Mining; Mining Technology; Genesis Minerals Limited (1, 2)