- St Barbara (SBM) has appointed Macmahon Holdings (MAH) as underground mining contractor for the Gwalia mine at its Leonora Operations in WA
- The initial contract term is for five years, with the option for St Barbara to extend the contract for a further three years
- The company says the appointment of Macmahon brings an opportunity to enhance the performance of the Gwalia mine
- Prior to the new appointment, Byrnecut Group held the position for seven years and will now begin its handover to St Barbara
- St Barbara and Macmahon are expected to sign the mining services agreement this month
- St Barbara shares are down 2.22 per cent, trading at $1.99
St Barbara (SBM) has appointed Macmahon Holdings (MAH) as underground mining contractor for the Gwalia mine at Leonora Operations in WA.
Following an extensive evaluation process, Macmahon was selected for an initial contract term for five years. The agreement comes with the option for St Barbara to extend the contract for a further three years.
The company says the appointment of Macmahon brings an opportunity to enhance the performance of the Gwalia mine.
The new contract terms involve risk responsibility between the contractor and St Barbara, which the company expects will improve underground mining performance and productivity, while reducing operating costs.
Worker headcount is expected to remain stable throughout the new appointment.
“This change is indicative of St Barbara’s determination to enliven Gwalia’s future, to safely and sustainably rebuild operational performance and to secure future investment by delivering predictable and strong financial returns,” said St Barbara Managing Director and CEO Craig Jetson.
Prior to the new appointment, Byrnecut Group held the position for seven years and will now begin its handover to St Barbara.
“We would like to thank Byrnecut for their service over the past seven years and look forward to an orderly and effective transition. During the handover period management will be focused on the wellbeing of our people and continuity of operations,” said Jetson.
St Barbara and Macmahon are expected to sign the mining services agreement this month.
St Barbara shares are down 2.22 per cent, trading at $1.99 at 9:35 am AEDT.