Macmahon wins $463m Indonesia gold contract
Australia’s Macmahon Holdings announced on Thursday that it had been awarded a $463-million mining services contract for the Awak Mas gold project in South Sulawesi, Indonesia, by PT Masmindo Dwi Area (PT MDA), a subsidiary of PT Indika Energy.
The seven-year contract, which includes an option to extend for an additional five years, will see Macmahon undertake opencut mining activities such as drilling, loading, hauling, and mine site development.
Operations are expected to start in the first half of 2025, adding about $463-million to Macmahon’s secured order book.
Key mining equipment for the project will be drawn from Macmahon’s existing fleet, with $17-million in growth capital to be deployed over the first four years. This expenditure aligns with the company’s growth capital target of $30-million a year and is included in its unchanged 2025 total capital expenditure budget of $230-million.
Macmahon also confirmed that the project will not affect its 2025 financial year net debt or its underlying earnings guidance of $160-million to $170-million.
“We are delighted to be selected as the mining contractor for the Awak Mas gold project in Indonesia, which presents a great landscape for us given our existing relationships,” said CEO and MD Michael Finnegan.
“This project will add to our secured work in hand, and we are pleased to have negotiated a low capital solution utilising existing fleet and variable leases. I would like to thank the Macmahon team who have worked closely with PT MDA over the last 12 months to build a strong relationship, which I am confident we will continue to build on.”
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...
VISIT SHOWROOM
AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
