AngloGold Ashanti Australia has extended its mining services contract with Macmahon at the Boston Shaker underground mine in Western Australia.
Macmahon has been providing underground mining services to AngloGold at Boston Shaker since 2019 and will continue with execution of the scope of services including mine development, production drilling, cable bolting and ore stoping.
The extended term of the three-year contract will expire on 1 May 2027 and is expected to generate revenue of $117 million per annum, adding $352 million to Macmahon’s secured order book.
Macmahon said that it will largely utilise its existing fleet for the period of the extension.
Macmahon’s CEO and Managing Director, Michael Finnegan, said, “We are delighted to have been awarded an extension at Boston Shaker where we have worked to build an excellent relationship with our client, focused on driving safety and performance outcomes.
“The contract extension award is a critical step toward growing the underground portfolio by 50 per cent over the next two to three years. With capital already deployed in the project and no new growth capital required, we expect the extension to enhance our ROACE performance – where we recently increased our target from 15 per cent to 20 per cent per cent.”
The Boston Shaker mine is part of the Tropicana gold operation, located 330km northeast of Kalgoorlie and is a joint venture between AngloGold (operator – 70 per cent) and Regis Resources (30 per cent).
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