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St Barbara appoints Macmahon as Gwalia underground mining contractor

Published by , Editor
Global Mining Review,

Macmahon Holdings Ltd has announced that it has been selected by St Barbara Ltd to provide all underground mining services to the Gwalia underground gold project in Western Australia from May 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 US.

The scope of work for Macmahon 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 5 years, with St Barbara having an option to extend for a further 3 year period. Macmahon estimates the contract will generate approximately AUS$500 million in revenue over the initial 5 year term, which will require capital expenditure of approximately AUS$40 million over FY21 and FY22.

Macmahon and St Barbara are working to finalise the mining services agreement, with signing expected in March 2021. Macmahon will commence early works on site in April, before full mobilisation in May 2021.

Macmahon’s Managing Director and CEO, Michael Finnegan, said: “We are delighted to be selected for the Gwalia operation by St Barbara, a well-established and respected gold producer. We will work very closely with our new client to ensure continuity of operations during the transition period. This new project will make an important contribution to our strategic objective to diversify and expand our underground business.”

St Barbara’s Managing Director and CEO, Craig Jetson, added: “St Barbara is delighted to appoint Macmahon as the underground mining contractor at Gwalia to unlock the potential of the mine and instill a performance-led culture. We are confident that this partnership will deliver strong outcomes across employee safety and wellbeing and enable our focus on productivity. We look forward to initiating a seamless transition period over the coming weeks.”

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Australian mining news Gold mining news Mining equipment news