Leonora, Western Australia
Macmahon was awarded a new mining services contract with a three-year option for the Gwalia Gold Mine in March 2021.
The Gwalia mine is one of Australia’s oldest underground gold mines, with St Barbara having operated this flagship asset for the past 15 years. The mine was originally established in 1897 by Herbert Hoover, who later became President of the United States.
The scope of work will involve a whole of mine service including mine development, ground support, production drilling and blasting, loading and trucking, shotcreting and paste fill reticulation.
The initial contract term will be for five years, with St Barbara having an option to extend for a further three-year period.
Macmahon estimates the contract will generate approximately $500 million in revenue over the initial five-year term, which will require capital expenditure of circa $40 million over FY21 and FY22.