Macmahon Holdings (ASX: MAH) has been awarded its largest single mining contract after securing a $1.8 billion contract to deliver open cut mining services as part of the Christmas Creek Mine expansion for Fortescue Metals Group (ASX: FMG).
The contract award brings Macmahon’s mining order book to $3.6 billion, its highest level in the company’s history.
The project includes all aspects of mine operations including drill and blast, overburden removal, ore harvesting, maintenance of equipment and associated services.
It will involve the movement of around 300 million bank cubic metres of iron ore and associated overburden material.
Since commencing mobilisation to site under a limited notice to proceed, Macmahon has recruited about 600 people for the project, with more than 500 employees already mobilised to site.
Mining activities have commenced, with the development of on-site infrastructure underway and the mining of overburden, harvesting and drilling also in progress.
Macmahon will operate and maintain the fleet, most of which will be supplied by the client. The fleet includes large scale equipment including 400t and 600t class excavators, 190-300t capacity dump trucks, 200t wheel loaders, drills and associated support equipment.
The company said that the capital requirements are expected to total around $30 million during the term of the contract, with the company’s recent equity raising to support these requirements.
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