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$352M tender awarded for underground mine


An Australasian mining services company received more work at a subterranean operation.

Macmahon Holdings recently secured an extended contract at AngloGold Ashanti’s and Independence Group NL’s Boston Shaker Underground Mine.

The contractor will spend another three years providing mine development, production drilling, cable bolting, ore stoping and other underground mining services at the site, which is part of the Tropicana mine. The latest agreement expires on 1 May 2027.

Largely the same fleet will be used including two jumbos, two production drills, three remote-capable loaders and four trucks.

Macmahon has blended the underground mined ore with open pit ore and processed the mixture at the existing Tropicana processing plant. The mill throughput of 8.1 million tonnes per annum was maintained without any expected change to processing plant operating costs.

“The contract extension award is a critical step toward growing the underground portfolio by 50 per cent over the next two to three years. With capital already deployed in the project and no new growth capital required, we expect the extension to enhance our ROACE performance – where we recently increased our target from 15 to 20 per cent,” CEO and managing director Michael Finnegan said in a public statement.

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