New contracts present opportunities with Macmahon

In two short months, Australian construction and contracting mining company, Macmahon Holdings has won a number of major mining contracts. 

Earlier this month, the company announced it had been awarded some $90m in contracted works including: 

• Predevelopment work adjacent to current operations at BHP Billiton Iron Ore’s Wheelarra Mine to construct haul roads and run of mine pad;
• Mining operations and ore re-handling at Newmont’ s Boddington Gold Mine in Western Australia;
• Works at Newcrest’s Cadia Valley Operation, namely underground development works at the Cadia Hill Mine and at the Cadia East Project, which includes a ventilation adit; and
• Production drilling, cablebolting and shotcreting at Panoramic Resources’ Savannah Project in Western Australia.

In addition, Macmahon was announced as the preferred contractor for the first stage of the $300 million Fortescue Metals Group Rail Spur construction in the Pilbara region of Western Australia.

The contract will involve the construction of 81km of rail formation from the FMG main rail line through the Chichester Range towards the Solomon deposit.

Works to establish the rail formation will involve more than six million cubic metres of earthworks, including sidings and associated drainage, the construction of four major bridges including two over the Fortescue River and also the establishment of level crossings over the Great Northern Highway and other roadways.

Finally, Macmahon this week announced it had won a $110 million two-year underground engineering construction contract at the CSA copper mine, located in Cobar in central western New South Wales.

Preliminary works will commence immediately, with the project scheduled for completion late in the 2012 calendar.

The contract will see Macmahon undertake the project works as a complete turnkey contract. This will include all engineering design, fabrication, procurement, construction and management of the extension and upgrade of the CSA No. 1 Shaft. The project will require approximately 70 people to be employed on site.

The scope of work includes: 

• Extension of the existing shaft from 1050 metres to 1550 metres including ground support and concrete lining
• Equipping the shaft for hoisting to the surface including steel guides and services
• Construction of a new head frame and installation of a tower mounted friction winder; and
• Construction of a new underground materials handling system including crusher, ore bins, conveyors and loading station

The project will be delivered by the Engineering division, which was previously part of the Underground division. The Engineering division will target projects such as this and the growth opportunities that exist in the market.

Operating for more than 45 years, Macmahon now employs around 3000 people and boasts a current order book of $2.2 billion, with major projects in Australia, New Zealand, South East Asia and Africa.

Macmahon will require civil engineering, trades and operators for these contracts.