Gwalia gold project : Macmahon to bag $390m mining services contract from St Barbara

Macmahon Holdings is set to bag an AUD 500 million ($390.32 million) contract related to the Gwalia gold project in Western Australia from St Barbara Limited for providing underground mining services.

The contract work is scheduled to begin from May 2021 with Macmahon to begin early works on site next month prior to full mobilization.

Michael Finnegan – Macmahon MD and CEO said: “We are delighted to be selected for the Gwalia operation by St Barbara, a well-established and respected gold producer. We will work very closely with our new client to ensure continuity of operations during the transition period.

“This new project will make an important contribution to our strategic objective to diversify and expand our underground business.”

The Gwalia gold mine has been operated by St Barbara for the last 15 years.

Macmahon to bag $390m mining services contract from St Barbara for the Gwalia gold project in Western Australia. Photo courtesy of Khusen Rustamov from Pixabay.

Under the five-year contract, Macmahon will be responsible for mine development, production drilling and blasting, ground support, shotcreting, loading and trucking, and paste fill reticulation.

St Barbara has an option to extend the Gwalia gold project contract for an additional three-year period.

Macmahon and St Barbara are expected to sign the mining services agreement for the Gwalia gold project this month.

Craig Jetson – St Barbara MD and CEO, commenting on the Gwalia gold project, said: “St Barbara is delighted to appoint Macmahon as the underground mining contractor at Gwalia to unlock the potential of the mine and instill a performance-led culture. We are confident that this partnership will deliver strong outcomes across employee safety and wellbeing and enable our focus on productivity.

“We look forward to initiating a seamless transition period over the coming weeks.”