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- NZ subsidiary awarded Snowy River mine contract
- Work to be undertaken on underground mining services
- Services to include mine development, production and backfill operations
- Project set to produce its first gold in December
Macmahon Holdings’ (ASX: MAH) wholly-owned subsidiary Macmahon New Zealand has landed an underground mining services contract at the Snowy River gold mine project south of Reefton.
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Located on New Zealand’s South Island, the Snowy River project is currently being operated by a wholly owned subsidiary of Endura Mining, Tasman Mining, and is scheduled to produce its first gold in December 2026.
Macmahon will transition the underground operations to deliver underground mining services, including mine development, production and backfill operations. The contract has a term of five years commencing October 2026, with an estimated value of $406.2 million.
MD and CEO, Michael Finnegan, said the contract award marks Macmahon’s return to mining in New Zealand.
“Macmahon is pleased to partner with Endura to develop the Snowy River gold mine,” Mr Finnegan said.
“Endura has an experienced management team, led by executive chair Jake Klein, with a clear growth strategy to build a portfolio of gold and copper assets.
“The Snowy River project is a high-grade underground gold mining project currently being developed to become one of New Zealand’s largest gold operations. Our long-term contract highlights Macmahon’s underground mining capabilities and establishes the company as a key partner to advance the project towards production.”
Mr Finnegan said the project combines Macmahon’s technical and mining expertise with Endura’s vision for the asset.
“We look forward to collaborating with the Endura team to deliver a safe, efficient and sustainable project while realising the full potential of this historic gold mine.”
Snowy River dates back to 1905 when the main “Birthday Reef” was discovered by a small prospecting group. Mining operations continued for 45 years up until 1951 and during that period the mine produced about 733,000 ounces of 21 tonnes of gold.
The mine was still operating in profitable ore when the collapse of the Blackwater Shaft resulted in the closure of the operation. It is still considered one of the richest and most consistent gold reefs discovered anywhere in the world.
MAH is steady at $1.01 with a Mkt cap of $2.154B prior to markets opening.
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