Macmahon Holdings Ltd. was awarded a four-year contract with Silver Lake Resources to perform the mining works at the Deflector gold and 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.
The new contract with Silver Lake will run until April 2025 and is expected to generate approximately $220 million in revenue. The contract is a full-service mining contract and therefore incorporates all underground development, ground support and production activities, including the provision of all labor and mobile mining equipment.
“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 realizing from the GBF acquisition,” Macmahon CEO and MD Michael Finnegan said. “Importantly, the Deflector mine is a high-grade gold and copper asset in Western Australia, so is an attractive project in the current macroenvironment. We look forward to continuing to support the development of Deflector, and to achieving further scale in the underground market.”