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Another contract awarded for part of $1.7B coal mine


An underground mining company has won a new tender for part of a $1.76 billion coal operation in Central Queensland’s Bowen Basin.

Macmahon Holdings recently secured an extension on its contract for QCoal Group’s Byerwen Coal Mine, 140km west of Mackay.

The contractor will continue to carry out open-cut mining services at the operation for the three years to November 2023. It will also work on the mine’s expansion, which will ultimate lift production to 10 million tonnes of hard coking coal per annum. QMEB can reveal the deal is worth $700 million and will continue to employ more than 430 people at the site.

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1500 jobs

Once fully operational the mine will produce up to 10 million tonnes of coking coal each year for export to Japan, Europe, India and South East Asia. The full project will create 1000 construction jobs plus a further 500 permanent positions, mostly filled by locals from the nearby regions.

There is potential for a further two year extension that would increase the value of Macmahon’s contract to more than $1B.

For now the contractor plans to spend $16M on ancillary equipment and $37M on two extra 800 tonne hydraulic excavators.

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“I am very happy with the way our projects and our people have performed over the past few months, and with the fact we were able to pay an interim dividend in April as originally planned,” Macmahon CEO and managing director Michael Finnegan said in a public statement.

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