Macmahon secures Queensland contract extension

Macmahon Holdings says a A$440 million, 20-month extension of its mining contract at the Byerwen coking coal operation in central Queensland, starting in November this year, takes new work won in FY23 to about $2 billion.

The contractor has been providing open cut mining services at Byerwen since the mine started in 2017. It is owned 85% by QCoal Group and 15% by Japanese steel maker, JFE Steel.

Macmahon said there were no new capital expenditure requirements at Byerwen nor increases in working capital.

It said the extension didn’t impact its FY23 underlying earnings guidance of $105-125 million.

ASX-listed Macmahon’s share price was up about 4% today, capitalising the company at $291m.

The shares have dipped more than 15% in the past month.


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