$200m of new mining work

Macmahon Holdings has been awarded a long-term mining contract for the new Sinclair...

  Macmahon Holdings has been awarded a long-term mining contract for the new Sinclair Nickel Project owned by Jubilee Mines, as well as an extension to its existing Olympic Dam underground development contract for BHP Billiton. The two contracts have a combined value of $200m.The Sinclair Nickel Project is a four-year contract related to the development and mining of Jubilee Mines’ new nickel sulphide project at Sinclair, located approximately 300km north of Kalgoorlie, in the Goldfields Region of Western Australia. Approximately two years into the contract, the open pit component is expected to be completed and the Sinclair Nickel Project will move to an underground mining operation. The extension at Olympic Dam in South Australia adds 18 months to the existing underground development contract, which commenced in January 2004. With 250 employees at the mine, Macmahon will deliver 18,000m of lateral development, install over 100,000m of cable bolts and apply some 72,000 cubic metres of shotcrete during this next phase of the contract. Macmahon Chief Executive Officer, Nick Bowen reinforced the importance of this significant additional work in maintaining the momentum generated by the Group’s growth strategy. “The Sinclair Nickel Project is a prime example of how Macmahon has the capacity to deliver a life of mine solution to its customers,” he said. “The Olympic Dam underground work demonstrates the advantages of maintaining a close working relationship with our major customers. Each time BHP Billiton has asked Macmahon to step up and provide additional capacity, we have been able to deliver. “Both the Sinclair and Olympic Dam contracts reflect the value, in terms of both safety and efficiency, which our experienced teams are able to bring to complex mining projects,” Mr Bowen said.“With these new contracts we now have $1.2b or 95 percent of our forecast revenue locked away for the 2008 year, which positions us well to deliver on our growth targets.”