Macmahon adds $626m to order book

Listed contractor Macmahon Holdings has secured further work at the Tropicana and Telfer mines in Western Australia, with the contracts worth more than $600 million in total.

Today, Macmahon said it had been contracted by South Africa's AngloGold Ashanti to complete further work at Tropicana, a 70:30 joint venture with Regis Resources, located northeast of Kalgoorlie.

Macmahon has provided services at Tropicana since open cut mining began in mid-2012.

The company said the extra work secured followed a completed final cutback study of the operation's Havana pit and optimal mining method.

Macmahon says it has been provided with the scheduling detail for the cutback, which is expected to add 155 million tonnes to the material to be mined from 2024.

The final cutback will also extend the open pit mine life by four years, from 2023 to 2027.

The contract extension is worth about $470 million.

Meanwhile, Macmahon's contract with Melbourne-based Newcrest Mining for work at the Telfer operation has also been extended.

The new work, valued at about $138 million, is associated with Telfer's West Dome Stage 5 cutback, announced earlier this month.

The contract will extend Macmahon's work on site until September 2024.

The Perth Airport-based company has also secured work on the Hu'u copper-gold project, located on Indonesia's Sumbawa island, through an $18 million contract.

Macmahon has been tasked with building an 11-kilometre access road to Hu'u, which is 80 per cent-controlled by Brazilian giant Vale.

Work is expected to start in September and require about 150 personnel.

Macmahon managing director Michael Finnegan said the new contracts demonstrated the company's broad capabilities, as well as its potential for continued growth.

"A key highlight is the extension of our long-term alliance contract at Tropicana, which has been a cornerstone of our surface mining business in Western Australia for many years and has recently expanded into underground mining," he said.

Shares in Macmahon closed down 2 per cent to trade at 24 cents.