St Barbara Ltd advises that, following an extensive tender process, Macmahon Holdings Ltd has been appointed the underground mining contractor at the Gwalia gold mine at Leonora Operations in Western Australia.
The initial contract term is five years, with an option for St Barbara to extend for a further three-year period.
The appointment of Macmahon brings an opportunity to enhance the performance of the Gwalia mine. The change of underground operator and new contract terms are an important aspect of St Barbara’s Building Brilliance company transformation.
St Barbara Managing Director and CEO Craig Jetson said: “St Barbara is delighted to appoint Macmahon as a key partner in our commitment to instill a performance-led-culture at Gwalia.”
“This change is indicative of St Barbara’s determination to enliven Gwalia’s future, to safely and sustainably rebuild operational performance and to secure future investment by delivering predictable and strong financial returns.”
“We would like to thank Byrnecut for their service over the past seven years and look forward to an orderly and effective transition. During the handover period management will be focused on the well- being of our people and continuity of operations.”
The new contract terms dictate an appropriate risk responsibility between the contractor and St Barbara and is expected to improve underground mining performance and productivity, while reducing operating costs. Worker headcount is expected to remain stable.
St Barbara and Macmahon expect to sign the mining services agreement in March 2021.