Macmahon secures large Indonesia gold contract


Staff reporter

Australian mining contractor Macmahon Holdings says a new A$463 million, seven-year commission at the Awak Mas gold project in Indonesia will require only circa-$17 million of new capital spend over four years.

The ASX-listed company said key mining equipment needed for start-up in the first half of this year would come from its existing fleet.

New capex was included in its current $30 million growth capital budgeted for FY2025 (to June 30 this year) and $230m total FY25 capital expenditure budget.

The seven-year surface mining contract, with a five-year extension option, is with PT Masmindo Dwi Area (PT MDA), a subsidiary of PT Indika Energy.

“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,” Macmahon CEO Michael Finnegan said:

“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.”

 

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