Newcrest Mining has announced that it has awarded Macmahon Holdings a contract to provide mining services at its Telfer operation in the Pilbara region of Western Australia.
Under the terms of the agreement, Macmahon will provide open pit mining and bulk earthworks related services such as drilling and blasting, mining of waste materials, equipment hire and subcontractor management until 2022.
“Following a competitive tender and due diligence process examining safety, experience and capabilities, Newcrest has awarded the contract for Telfer open pit mining and mobile mining equipment maintenance to Macmahon Holdings Limited to commence early February 2016,” Newcrest Mining said in an announcement.
Macmahon expects to move an average of 35 million tonnes of material annually from the two open pits that will generate around $62 million in annual revenue.
“We are excited to be awarded this contract by Newcrest to assist them in their ongoing mining operation at this large scale gold asset,” said Macmahon Chief Executive Officer Sy van Dyk in an ASX Announcement.
“Given the rolling nature of this contract to 2022, establishing a trusted relationship has been a key priority for both parties, and today’s announcement is a testament to the service proposition that Macmahon has been able to provide. We look forward to building on the positive and collaborative relationship already formed with Newcrest, and delivering lasting benefits for all stakeholders during the course of this contract.”
According to the ASX Announcement, operations will begin in February 2016.