Tag Archives: Macmahon Holdings

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

Coal technology, Mine operation news, Mining services, Steel and iron ore, , , , , , , ,

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.”

Macmahon lines up open-pit/underground work at Red 5’s King of the Hills gold project

Mine operation news, Mining services, Precious metals, , , , , , ,

Macmahon Holdings Ltd has been awarded its second major contract in as many weeks in the Goldfields region of Western Australia, receiving a letter of intent to carry out contract mining services at Red 5 Ltd’s King of the Hills (KOTH) gold project.

The KOTH project is an open pit and underground gold deposit with a projected mine life of over 16 years. This could see the company produce 176,000 oz/y of gold over the first six years, according to a recent feasibility study.

Red 5 has commenced the construction of the camp and processing facilities on site and is planning for mining to commence in early 2022. First gold production is expected to occur in June 2022.

Just last week, Macmahon was appointed the underground mining contractor at St Barbara’s Gwalia gold mine at Leonora Operations in Western Australia.

Following a detailed tender process for both the surface and underground mining activities, Red 5 has issued a letter of intent to Macmahon for a proposal combining both scopes of work. Under the agreement, the parties are working to finalise the documentation by which Macmahon will provide all surface and underground mining services to the project over a five-year contract term, commencing in the March quarter of 2022.

Macmahon expects this documentation will be completed by June 2021 and that the contract will add over A$650 million ($497 million) to the company’s order book.

Macmahon’s CEO and MD, Michael Finnegan, said: “We are delighted to be in advanced discussions with Red 5 for its King of the Hills gold project in Western Australia. We have a strategy to expand our presence across the mining services value chain, and this project highlights the benefits of being able to offer a combined surface and underground mining solution from the outset. We look forward to continuing our relationship with the Red 5 team and supporting their development of this important project.”

Macmahon expands underground work with Silver Lake Deflector contract

Base metals, Mine operation news, Mining equipment, Mining services, Precious metals, , , , , , ,

Macmahon Holdings’ underground mining division has been awarded a four-year contract with Silver Lake Resources to perform the mining works at the Deflector gold-copper mine in Western Australia.

A Macmahon subsidiary, GBF, has been providing underground mining services at the Deflector mine since mining commenced in early 2016. Macmahon acquired 100% of GBF in 2019, and this business is now an important part of the company’s strategy to expand in the underground mining services market, it said.

The company also recently had its stay extended at Silver Lake’s Mount Monger gold operations, in Western Australia.

The contract is a full service mining contract and, therefore, incorporates all underground development, ground support and production activities, including the provision of all labour and mobile mining equipment. Anticipated to run until April 2025, the contract is expected to generate around A$220 million ($170 million) in revenue for the company over this period.

Macmahon’s CEO and Managing Director, Michael Finnegan, said: “This new contract is an important milestone in our strategy to expand our underground business, and is a clear demonstration of the benefits we are now realising from the GBF acquisition.

“Importantly, the Deflector mine is a high-grade gold and copper asset in Western Australia, so is an attractive project in the current macro environment. We look forward to continuing to support the development of Deflector, and to achieving further scale in the underground market.”

Macmahon Holdings books open pit coal and underground gold work

Coal technology, Mine operation news, Mining services, Precious metals, Steel and iron ore, , , , ,

Macmahon Holdings has added another A$270 million ($201 million) of work to its books with the formal award of preferred contractor status at the Foxleigh coal project and a two-year contract extension for its GBF business at Pantoto Ltd’s gold operation.

After being selected as preferred contractor in October, Macmahon’s work at the Foxleigh joint venture operation (pictured) in Queensland, Australia, will commence on March 1. The contractor will provide equipment hire and maintenance services at the open pit, truck and excavator operation in the Bowen Basin, with the contract expected to generate circa-A$250 million of revenue over a five-year term.

The work with Pantoro will see GBF take on additional work at the Wagtail and Nicolsons underground gold operations near Halls Creek in Western Australia. This contract will extend GBF’s tenure at the project to October 2023, and is worth around A$20 million, it said.

Macmahon CEO and Managing Director, Michael Finnegan, said: “The formal award of the Foxleigh project adds A$250 million to our order book and further diversifies and expands our east coast presence. We are now looking forward to building on the relationship with our new client.

“We are also delighted to continue the strong relationship that GBF has built over many years with Pantoro. The contract extension is another important step in our strategy to further expand in the underground market and we remain very well placed to continue growing our underground business.”

Macmahon, GR Engineering on board Calidus Resources’ Warrawoona gold project

Comminution of minerals, Mineral processing, Mineral project development, Mining project news, Mining services, Precious metals, , , , , , , ,

Calidus Resources has started construction ahead of schedule at its Warrawoona project, as well as made two key appointments to deliver on its gold mine development in Western Australia.

It has appointed Macmahon Holdings as the preferred mining contractor for the project, while GR Engineering Services has been awarded preferred tenderer status for the process plant engineering procurement and construction.

While construction activity has already commenced ahead of the main project construction activities, which are expected to kick off in the March quarter of 2021, these contract tenders will allow finalisation of major contracts as part of the ongoing feasibility study at Warrawoona, due for completion this month, Calidus said. It will also help facilitate front end engineering and design for the project and the placing of orders for long lead items.

This project involves the development of a new open-pit mine in the Pilbara region, with the scope of work for Macmahon to include all open-pit mining activities, and potentially some early stage civil works.

Macmahon estimates the open-pit mining work will generate around A$220 million ($160 million) in revenue over 54 months and require capital expenditure of circa-A$30 million. There is also potential for the Warrawoona project to include underground mining, which could represent a further opportunity for Macmahon when this is developed, it said.

Macmahon expects it will start work on site in the first half of 2021, with the project to eventually employ more than 120 of its personnel.

GR Engineering, which has completed the last two gold plants in Western Australia, according to Calidus, will work on the design and construction of the process plant and associated infrastructure, meanwhile.

A prefeasibility study on Warrawoona completed in July 2019 outlined average gold production of 97,000 oz/y at an all-in sustaining cost of $1,159/oz over an initial six-year mine life via a 2 Mt/y conventional CIL processing circuit with single stage crush and SAG mill.

Among the initial works the company has started are 7 km-long access road to the village and process plant (pictured); the installation of the 240 room village that has been previously purchased by Calidus; the installation and operation of communications by Telstra; and the installation and equipping of water bores.

Macmahon and Redsands looking at rehab, contract mining opportunities in WA

Environmental, Mining industry recognition, Mining services, Sustainable mining, , , , , ,

Macmahon has signed an agreement with Redsands Rehabilitation to jointly pursue rehabilitation and contract mining opportunities in the northern Goldfields region of Western Australia.

Redsands is an Indigenous-owned business focused on the rehabilitation and revegetation of land disturbed by mining. The company was founded by Dennis Sceghi, who has worked in the mining industry as an equipment operator and contractor for over 30 years and is also an elder of the Kultju native title group.

Macmahon CEO and Managing Director, Michael Finnegan, noted that by working together, Macmahon and Red Sands will have an enhanced ability to identify work, offer economic opportunities to Indigenous people and improve the sustainability of the mining industry.

“Redsands is a regional business with very specialised environmental expertise, drawing on the skills of traditional owners,” he said. “With this agreement we will be able to target new opportunities which may not have been available to us individually. We also hope to be able to create additional Indigenous employment and expand our rehabilitation services in Western Australia.”

Macmahon, Flanders help automate Cat drills at Tropicana gold mine

Automation, Communications in mining, Explosives and blasting, IoT, Mine operation news, Mining equipment, Mining safety, Mining services, Mining software, Precious metals, , , , , , , , , , , ,

The rollout of a A$6 million ($4.3 million) autonomous drill fleet at the Tropicana gold mine in Western Australia is believed to be an industry first for hard-rock mining, according to the mine’s contractor, Macmahon Holdings.

Macmahon says the use of hammer drilling versus the more traditional rotary concept when it comes to blasthole drilling is unique in the hard-rock space.

AngloGold Ashanti Australia (AGAA), with support from Flanders, a technology innovator and leader in autonomous drilling, and Tropicana Mining Alliance partner, Macmahon Holdings, now has five autonomous CAT MD6250 drill rigs and seven manned rigs as part of its drilling fleet.

Mining at Tropicana, which is 70% owned and managed by AngloGold Ashanti Australia and 30% by IGO, is carried out by Macmahon.

The fit out of the fifth rig in August comes only four months after the first rig was commissioned on April 27 and incorporates the ARDVARC drill control system with multi pass and down-the-hole modes to provide seamless operations with the site’s recently-installed long term evolution (LTE) telecommunications network, Macmahon said.

The project was initiated by AGAA Manager: Technology, Martin Boulton, who developed the original project scope before engaging Macmahon to further develop the business case.

He has been integral in developing the roll out schedule and managing the various technical linkages such as running the solution on the Tropicana LTE platform, according to Macmahon. This work led to the project taking out the AngloGold Ashanti Zero HARM (Hazard & Risk Management) Award in 2020.

“The autonomous drill fleet roll out has had many benefits with increased operating efficiency and asset utilisation as the equipment can operate through lightning and inclement weather, explosive detonation and eliminates the need for operator fatigue breaks,” Boulton said.

It also introduces a safer, risk-reduced method in production drilling, increases asset availability and operating efficiency and decreases asset wear, according to Macmahon.

While still early days, the autonomous fleet has already recorded an 8% increase in instantaneous penetration rates compared with the manned rigs, along with a 14% reduction in delay times in June compared with May.

These improvements can be attributed to the rigs’ ability to continue to drill safely during live blasts and lightning storm, while delays have also been removed from water refills and shift changes, the company said.

Tropicana Autonomous Drilling Systems Specialist, Richard Hill, said the autonomous project was testament to the team on site and at Flanders, and had come a long way in a relatively short period of time.

One person (drill controller) can operate up to five rigs from the one console located in the administration building at Tropicana with the automated rigs supported by two ground crew on the pit floor. To date, up to three rigs have been operated from the one console.

With roster changes on a two weeks on and one week off swing, that equates to three crews (with one back-up per crew).

“The plan is to have six drill controllers when fully mobilised, one main controller and a backup per crew,” Hill said.

However, like any new concept, it was not without some early teething problems.

The first was rod feed rates, particularly when it came to transitional ground, but the solution came with development of a new bit chasing logic and the plan is to also develop an automated bit changer that would further reduce delay times, Macmahon said.

Another challenge was managing the autonomous operating zones, which are currently required to run separately from the manned rigs as they were not equipped with collision avoidance software.

“We are working on that now and within the next couple of weeks should be able to incorporate those in the collision avoidance, and that will then increase our production as we will not have to change work areas as often,” Hill said.

Manning has also been an issue in terms of availability of ground crews to support the drill controller, but the role will now be classified as an entry-level position with a clear career pathway progression for new entrants.

Macmahon General Manager Plant & Maintenance, Mark Hatfield, said the company was thrilled with the overall performance of the fleet having achieved full conversion from design to installation and commissioning of the drill and remote operation centre in just eight weeks.

“The Flanders team have worked alongside our people providing specialist support for the duration of the trial on site, and remotely, and will work to provide continuous improvements in the coming months,” he said.

“The system provides an agnostic solution with a customisable capability, with all available drill data providing valuable insights for analysis and improved planning, and importantly, improving site safety conditions for our people.”

Macmahon extends stay at expanding Byerwen coking coal mine

Coal technology, Mine operation news, Mining services, Steel and iron ore, , , , , , , , ,

Macmahon Holdings is to help increase production at the Byerwen mine in Queensland’s Bowen Basin after securing an expansion and three-year extension of its work at the coking coal operation.

Macmahon has been providing open-pit mining services at Byerwen since the establishment of the mine in November 2017 and employs more than 430 people on site. The mine is owned by Byerwen Coal Pty Ltd, a joint venture between QCoal Group and Japanese steel manufacturer, JFE Steel.

The new contract significantly expands production to 10 Mt/y of hard coking coal, and applies from June 1, 2020, until November 1, 2023. The expected revenue over the contract period will be A$700 million ($483 million), with full capacity expected from July 2020, Macmahon said.

There is also an option to extend the contract for a further two years after this period. If this option is exercised, revenue from the contract could exceed A$1 billion, according to the company.

The expansion will involve capital expenditure by Macmahon of A$16 million on ancillary equipment. The contractor has also procured two additional 800 t hydraulic excavators for the project worth A$37 million, it said.

Macmahon CEO and MD, Michael Finnegan, said: “We are very pleased to have secured this expansion and extension at Byerwen, which is one of our cornerstone projects in Australia. Byerwen Coal is an excellent partner and the project has been very successful since its inception. We look forward to continuing to work with our client on the development of this premium asset.”

QCoal Group Managing Director, Christopher Wallin, said the production increase at Byerwen was testament to the favourable economics of the project and the work of the QCoal staff and contract partners involved in developing the mine over several years.

“The development of the Byerwen project is a great success story for the industry, with the mine now emerging as a very low-cost producer of hard coking coal,” he said. “I am very proud that this expansion will enable us to further contribute to the Queensland economy with additional local employment and opportunities for regional communities.”

Macmahon confirms extended stay at Silver Lake’s Mount Monger ops

Mine operation news, Mining project news, Mining services, Precious metals, , , , , , , , ,

Macmahon Holdings says its GBF underground mining services business has now finalised and signed contracts with Silver Lake Resources for additional work at the miner’s Mount Monger gold operations, in Western Australia.

The contractor announced back in February that a conditional letter of intent had been received by GBF, which Macmahon acquired in 2019.

Macmahon said: “These contracts will extend GBF’s tenure at Mount Monger to March 2023, and will add approximately A$200 million ($121 million) to its order book.”

GBF has been operating at Mount Monger since 2014, providing mining services to the Daisy Complex, Cock-eyed Bob and Maxwells mines, which form part of this operation.

The new contract sees GBF add the development of Silver Lake’s new Santa mine, which has an underground reserve of 257,000 t at 3.5 g/t Au for 29,000 oz of gold, to the remit. The first firing of the portal at Santa (pictured here) took place on March 1, according to the miner.

Macmahon moves into “cash flow positive” territory on Newcrest Telfer contract

Base metals, Mine operation news, Mining services, Precious metals, , , , , ,

Macmahon Holdings says it has come to an agreement with Newcrest Mining over the increased rates for its work at the Telfer gold-copper mine, in Western Australia, with the settlement leading to the contract becoming “cash flow positive” over its remaining term.

In June, Macmahon said it had commenced facilitated negotiations with Newcrest regarding pricing for changes to the mine plan and contract program at Telfer following a disagreement between the two parties.

Macmahon first commenced the Telfer life of mine contract in February 2016 and, “despite previously disclosed risks and difficulties associated with the project, achieved an operational turnaround in 2018”, it said. Without a rate increase being agreed by Newcrest or some other form of contract amendment, the mine plan and program changes had a negative impact on Macmahon’s costs and returns from the project, according to the contractor.

Telfer, some 450 km east-south-east of Port Hedland, comprises the Main Dome and West Dome open pits and the Telfer underground mine.

Macmahon CEO and Managing Director, Michael Finnegan, said: “The resolution of this dispute means we can now focus all of our attention on maximising the performance of our existing business, and capitalising on growth opportunities. We have several opportunities in our tender pipeline that we are pursuing from an exclusive or shortlisted position, and I am optimistic about the prospects of winning additional work in Australia and achieving further growth in our profitable operations offshore.”

Macmahon has reiterated its financial year 2020 guidance, with revenue expected to be between A$1.2-$1.3 billion ($829-898 million), and EBIT between A$80-$90 million.