The essential mining equipment needed to begin operations will be drawn from the existing fleet. Credit: BETO SANTILLAN/Shutterstock.

Mining and civil infrastructure services provider Macmahon has been awarded a $463m (A$746.82m) contract by PT Masmindo Dwi Area, a subsidiary of PT Indika Energy, for the Awak Mas gold project.

The project covers an area of 14,390 hectares in the Luwu Regency, South Sulawesi, Indonesia.

Under the terms of the contract, Macmahon will provide open-cut mining services including drilling, loading, hauling and site development.

The current contract period spans seven years, with an option to extend for an additional five years. Work is expected to commence in the first half of 2025.

Macmahon CEO and managing director Michael Finnegan said: “We are delighted to be selected as the mining contractor for the Awak Mas gold project in Indonesia, which presents a great landscape for us given our existing relationships.

“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. I would like to thank the Macmahon team who have worked closely with PT MDA over the last 12 months to build a strong relationship, which I am confident we will continue to build on.”

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Key mining equipment required to commence work will be sourced from the existing fleet, with approximately $17m in growth capital allocated over the first four years.

The capital expenditure for fiscal year 2025 (FY25) remains steady at $230m, incorporating the company’s current annual growth capital target of $30m.

Macmahon’s FY25 underlying earnings guidance of A$160m–170m is also unchanged, with no expected impact on net debt.