AngloGold Ashanti has issued a Notice of Award to Macmahon Holdings Ltd. for the development of the new Boston Shaker underground mine at the Tropicana gold mine in Western Australia. The Tropicana project, which is a joint venture between AngloGold Ashanti (70% and manager) and Independence Group NL (30%), is already Macmahon’s largest mining contract in Australia. The addition of the Boston Shaker underground work is worth approximately $170 million over five years.
“We are excited that our long-term alliance partnership with AngloGold Ashanti and Independence Group has grown to also include its new underground development at Tropicana, where we have been operating the surface mining since 2012,” said Michael Finnegan, CEO, Macmahon. “This is a great project to be associated with and we look forward to working closely with our client to safely and efficiently develop its underground project over many years to come. This contract win is a major step toward our strategic goal of growing our underground business and capitalizing on the increased level of underground opportunities with existing and potential new clients.”
Macmahon expects to commence work in May, while the contract documentation will be finalized by the parties in the coming weeks. Capex for the underground works is estimated to be approximately A$30 million, and will be primarily spread across the first three years.
