Tag Archives: Dawson South

Macmahon Holdings to carry on contracting at Anglo’s Dawson South

1st July 2024Mine operation news, Mining equipment, Mining servicesAnglo American, Dawson South, Macmahon Holdings, Michael FinneganDaniel Gleeson

Macmahon Holdings says it has been reappointed as the mining contractor at the Dawson South project, in Queensland, Australia, three years after initially getting the gig.

The Dawson South project forms part of the Dawson Mine, an open-pit steelmaking coal mine 180 km west of Gladstone, which is owned by Anglo American.

Macmahon is the incumbent mining contractor at the Dawson South project and will continue to provide open cut mining services using the current Macmahon workforce, including load and haul, and equipment maintenance under the new contract.

The contract commences on July 1, 2024, for a period of up to three years, adding approximately A$130 million ($87 million) annually to Macmahon’s secured order book.

The capital expenditure requirements and capital intensity of this project over the new term is significantly lower following the sale of Macmahon’s Dawson South equipment fleet earlier this year, which will continue to be used on the project. Macmahon announced the sale of assets to the market on April 12, 2024, which it said at the time was expected to result in net cash inflows of approximately A$44 million to be collected during its 2024 and 2025 financial years.

Macmahon CEO and Managing Director, Michael Finnegan, said: “We are delighted to be reappointed as mining contractor for the Dawson South project where we have worked to build an excellent relationship with our client. Macmahon recently sold a substantial portion of the Dawson South equipment fleet which will continue to be used at the mine. I believe the new contract structure benefits our client, is aligned with Macmahon’s capital light strategy, and improves ROACE (return on average capital employed) performance, where we recently increased the target from 15-20%. I would like to thank the Macmahon team that has worked closely with Dawson Mine to deliver this solution.”

Macmahon defies labour tightness to bolster contract mining order book

20th July 2021Coal technology, Mine operation news, Mining services, Precious metalsBatu Hijau, contract mining, Dawson South, gold, Gwalia, Julius, King of the Hills, Macmahon Holdings, Michael Finnegan, Northern Star Resources, PT Amman Mineral Nusa Tenggara, St Barbara Ltd, Western AustraliaDaniel Gleeson

Macmahon Holdings Ltd has added around A$1.35 billion ($988 million) of work to its order book with the signing of three previously flagged contract mining gigs, plus announced the addition of surface mining work at Northern Star Resources’ Julius gold project in Western Australia.

The three projects making up the A$1.35 billion of contract mining works are the 5-year agreement with St Barbara Ltd at the Gwalia gold mine, a three-year pact with Anglo American at Dawson South and a five-year contract with Red 5 Ltd at King of the Hills.

The contract with Northern Star Resources at Julius is expected to deliver revenue of A$25 million over the next 12 months. Production from the Julius deposit is expected to complement output from NSR’s Jundee operations.

In addition to these projects, Macmahon says it is well progressed in finalising the commercial arrangements for Phase 8 of its Batu Hijau copper-gold project in Indonesia, an operation owned by PT Amman Mineral Nusa Tenggara.

Macmahon commented: “While Macmahon has observed a tightening of the labour market in Australia over the past year, it can confirm that the Gwalia, Dawson South and Julius projects have commenced operations by the times required in those contracts.

“Macmahon has existing strategies for responding to challenges in the availability of labour, and believes it is well placed to continue to manage this operational issue into the foreseeable future, and to continue to deliver value for its clients.”

Commenting on today’s announcement, Macmahon CEO and Managing Director, Michael Finnegan, said: “Macmahon is continuing to build on its track record for delivery and to advance its growth strategy.

“It is very satisfying to have secured significant new work during financial year 2021, which provides us with a strong order book and excellent earnings visibility for FY22 and FY23. The underground work at Gwalia and King of the Hills also adds scale to our underground business, which is an important step in our strategy to diversify Macmahon.”

Macmahon to start mining Anglo’s Dawson South met coal mine

30th March 2021Coal technology, Mine operation news, Mining services, Steel and iron oreAnglo American, coal, contract mining, Dawson, Dawson South, Macmahon Holdings, metallurgical coal, Michael Finnegan, QueenslandDaniel Gleeson

Macmahon Holdings says it has been selected to provide surface mining services at Anglo American’s majority-owned Dawson metallurgical coal mine in Queensland, Australia, starting from July.

The work at the Dawson South operations, which forms part of the Dawson Mine, an open-pit met coal mine owned in a joint venture between Anglo American and Japan’s Mitsui Group, will generate around A$200 million ($153 million) in revenue over the three-year term, Macmahon said.

Signing of the mining services agreement is expected to occur in the near future, the company added.

Macmahon’s CEO and Managing Director, Michael Finnegan, said: “We are very pleased to be selected for the Dawson South operation by Anglo American, a leading global mining company. We look forward to working very closely with our new client to ensure a smooth transition period and continuity of safe operations. This new project further strengthens our growing east coast presence.”