Macmahon Holdings confirms it has been selected as the preferred tenderer to provide equipment hire and maintenance services at the Foxleigh joint venture operation in Queensland, Australia, from March 1, 2021.
The Foxleigh mine is an open pit, truck and excavator operation in the Bowen Basin, which produces low volatile PCI coal for Asia steel mill customers.
The proposed scope of work for Macmahon involves the hire and maintenance of 21 large capacity dump trucks and other ancillary equipment over a five-year term, together with the maintenance of client-owned equipment.
Macmahon estimates this work will generate around A$250 million ($177 million) in revenue and require capital expenditure of circa-A$50 million. Most of this capital expenditure will be to acquire 220 t dump trucks, which are expected to have a useful life of 10 years, Macmahon says.
Michael Finnegan, CEO and Managing Director of Macmahon, said: “We are very pleased to be selected as the preferred equipment and maintenance provider for the Foxleigh project, and we are looking forward to delivering for a new client in Queensland. This selection highlights our expertise in sourcing and maintaining large scale mining equipment and our ability to offer a range of service models to our clients.”
Foxleigh is jointly owned by QMetco, POSCO Australia and Nippon Steel Australia.