Macmahon Holdings has been selected by PT Citra Palu Minerals (CPM), a subsidiary of PT Bumi Resources Minerals Tbk, as the underground mining services contractor for the Poboya gold project in Sulawesi, Indonesia.
The award is an interim underground mining services contract. Under the interim scope of works, Macmahon will provide all underground mining development and ore mining activities including drilling, loading, hauling, equipment maintenance and mine services support.
The contract will commence immediately and remain on foot under a cost-plus arrangement until Macmahon and CPM finalise and execute an alliance style, underground mining services contract for five years. The full contract value is still to be determined, but is expected to add
approximately A$317 million ($200 million) to Macmahon’s orderbook.
The news follows an interim announcement from Macmahon made last year.
As part of its mine operating strategy, CPM will be supplying all major capital equipment and infrastructure for the project.
Macmahon currently provides open-pit mining services at the Poboya gold project.
Macmahon CEO and Managing Director, Michael Finnegan, said: “We are delighted to continue working with CPM on the next stage of the Poboya gold project which will see us expanding our services to include both surface and underground. We look forward to building on our valued relationship and are focused on growing the Poboya asset while continuing to drive safety and performance outcomes for our client.”
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