600 Pilbara Mining Jobs
The mining services company Macmahon Holdings Ltd has been awarded its largest mining contract.
The service mining contractor won the $1.8 billion contract to deliver open-cut mining services for Fortescue Metals Group’s Christmas Creek Mine expansion in the Pilbara region of Western Australia (ASX:FMG Fortescue).
CEO Ross Carroll said the five year contract was very significant as Macmahon focused its future development in the mining sector. The contract updates Macmahon’s mining order book with $3.6 billion in work, its highest level in the Company’s history.
“This is an exciting project that builds on the existing success of our surface mining operations, securing a stronger foundation for the Company’s mining focused business over the next five years,” Ross Carroll said. “Macmahon has an established and proud history of delivering mining projects in the WA Pilbara and this project expands the Company’s presence in the region.
The project includes all facets of mining operations including overburden removal, drill and blast, ore harvesting, equipment maintenance and associated services. 300 million bank cubic metres of overburden and iron ore will be mined. The project has created around 600 Pilbara mining jobs with more than 500 employees already on-site. Mining activities have commenced, with infrastructure underway, mining of overburden, harvesting and drilling.
Macmahon will operate and maintain the fleet of mining equipment, most of which will be supplied by the Fortescue. The fleet includes large scale equipment like 400t and 600t class excavators, 190-300t capacity dump trucks, 200t wheel loaders, drills and associated support equipment. The capital requirements are expected to total approximately $30 million during the term of the contract.
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