Macmahon Holdings (ASX:MAH) has announced a significant boost to its secured orderbook with a $900 million contract extension at the Byerwen coking coal mine in Queensland’s Bowen Basin. The three-year extension continues Macmahon’s existing role in providing open-cut mining services, including load and haul operations and crusher feed, which it has performed since the mine’s establishment in 2017. The Byerwen mine is a joint venture between QCoal Group and Japanese steel manufacturer JFE Steel.
The contract extension, slated to commence in October 2025, is contingent upon finalizing agreed terms by September 30, 2025. Macmahon CEO Michael Finnegan emphasized the importance of the QCoal relationship and the Byerwen project to the company’s stability over the past eight years. The company already has personnel and mining equipment deployed at the site, requiring no additional capital expenditure beyond sustaining capital budgets.
Located 45 minutes west of Glenden, the Byerwen Mine is projected to produce up to 10 million tonnes of hard coking coal annually. Macmahon will focus on refining the contract’s terms to enhance operational efficiencies, aiming for mutually beneficial outcomes with QCoal. The mine received its mining leases in May 2017 and has completed the construction of its stage one coal handling and preparation plant.
