Macmahon Holdings Limited (MAH) announced that it has been provided with a Letter of Intent to undertake a two year, $65 million contract for Bluestone Mines Tasmania to carry out the mining activities at its Renison underground tin mine. Bluestone Mines Tasmania is a wholly owned subsidiary of Metals X, Australia’s largest producer of tin. The mine is located on the west coast of Tasmania and is Australia’s richest source of tin.
The contract will see Macmahon undertake underground production and development works, as well as the overall management and maintenance of the mine owner’s mobile plant assets.
Macmahon Chief Executive Officer, Nick Bowen, said that this was an important award for the Company and demonstrates the value and expertise that Macmahon provides to its clients. “Our strong reputation and skilled management team has helped us to successfully win this contract and we look forward to working with the client to deliver quality results,” Mr Bowen said “Furthermore, the award gives the Company greater geographical and commodity diversification,” he said.
The Renison mine is currently owner operated and this award will see Macmahon assume responsibility for the underground operations under contract. Macmahon anticipates the workforce numbers to remain around the current levels. It is anticipated that Macmahon will commence work on site in mid March 2010.