ASX Announcement: Macmahon to construct Ranger 3 Deeps exploration decline

Mar 30, 2012

Macmahon Holdings Limited (ASX:MAH) today announced that it has been awarded the main contract for the construction of the Ranger 3 Deeps Exploration Decline Project for Energy Resources of Australia Ltd (ERA).

The contract, worth approximately $50 million, will see Macmahon establish a boxcut and complete portal establishment, plus 2,200 metres of development works, in preparation for ERA's diamond drilling program.

Work on the project will start in May, with both the Underground Mining and Northern Territory Construction businesses collectively delivering the boxcut and exploration decline.

Macmahon Chief Operating Officer – Mining, Ross Carroll said the contract award was an opportunity for Macmahon to again demonstrate its combined capabilities on a significant development.

"Macmahon has an established relationship with ERA through its NT Construction business and this contract broadens that success to include our Underground Mining operations," Mr Carroll said.

"The contract is a welcome expansion of our Underground Mining operations into the Northern Territory and will utilise existing equipment and personnel across the decline establishment."

Macmahon's package of work is scheduled for completion in early 2014.

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(Energy Resources of Australia release is attached)

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