Macmahon Holdings Limited says it has been awarded an underground mining services contract at the Deflector underground gold-copper mine in the southern Murchison region of Western Australia, while it has extended its stay at the Gwalia gold project in the state.

The Deflector scope for Macmahon includes all underground and mine development and production services and all other associated works.

The contract will commence on May 1, 2025 for a two-year period, but may be extended by agreement, and is expected to add approximately A$105 million ($67.3 million) to Macmahon’s secured orderbook.

As Macmahon already has its people and mining fleet deployed and operating at Deflector, there is no significant capital expenditure required beyond sustaining capital expenditure.

Managing Director and CEO, Michael Finnegan, said: “We are very pleased to have been awarded an underground mining services contract at Deflector where we have worked closely with the Vault team over several years. Macmahon values our relationship and are excited to continue building on this. I would like to thank the Vault and Macmahon teams for their continued dedication and look forward to  continuing to support the development of the Deflector operation.”

Macmahon has also been confirmed by Genesis Minerals Limited as the mining contractor at the Gwalia and Ulysses gold projects in the Leonora region of Western Australia. The scope for Macmahon, at both projects, includes all underground and mine development and production services and all other associated works.

The existing Gwalia contract has been terminated by mutual consent and the parties have entered into a new contract that includes the services at both Gwalia and Ulysses. The 13-month contract will commence in April 2025 and is expected to add A$67 million to Macmahon’s secured orderbook.

There is no significant capital expenditure required and the FY25 total capital expenditure budget is unchanged at A$230 million.