Macmahon Holdings Limited has secured a 20-month contract extension at the Byerwen coking coal mine in Queensland.
Since the mine’s inception in 2017, Macmahon has provided open cut mining services at Byerwen, employing around 520 people. Byerwen Coal Pty Ltd, a joint venture between QCoal Group and Japanese steel company JFE Steel, owns the Byerwen mine.
The contract extension will begin on 1 November 2023 and ends on 30 June 2025. It is estimated to generate roughly $440 million in revenue throughout the extended period, adding to Macmahon’s secured order book and increasing overall work won in FY23 to approximately $2 billion, including the uniquely structured Batu Hijau contract, which shareholders approved on 27 March 2023.
“We are very pleased to secure an early extension at Byerwen where we have worked closely with Byerwen Coal since the mine commenced operation in 2017. Importantly, this extension allows us to provide our workforce with certainty of increased tenure. Byerwen Coal has been an excellent partner reflecting the success and strength of our relationship that has been built on the foundation of operational delivery over several years. We look forward to continuing to strengthen our relationship and enhancing operational efficiencies on what is one of our cornerstone projects in Australia. I would like to thank the Byerwen Coal and Macmahon teams for their continued dedication and support which is what makes this project successful,” CEO and Managing Director Michael Finnegan said.
