Australian contractor Macmahon has been selected by PT Masmindo Dwi Area, a subsidiary of PT Indika Energy, for mining services at the Awak Mas gold project in South Sulawesi, Indonesia.
The scope of service includes open-cut mining activities and mine site development. The seven-year contract, with an option to extend for a further five years, is expected to commence in the first half of 2025. It will add $463 million to Macmahon’s order book.
“This project will add to our secured work in hand, and we are pleased to have negotiated a low capital solution utilising existing fleet and variable leases,” said CEO and Managing Director Michael Finnegan.
Key mining equipment required at commencement will be deployed from an existing fleet with circa $17 million growth capital spread over the first four years. This spread is included in the current growth capital target of $30 million per year.
Source: Macmahon