Indonesian Gold Project Awarded to Macmahon in Seven-Year, $463M Agreement

Mining and civil infrastructure services provider Macmahon has secured a $463 million (A$746.82 million) contract from PT Masmindo Dwi Area, a subsidiary of PT Indika Energy, for operations at the Awak Mas gold project in South Sulawesi, Indonesia. Spanning 14,390 hectares in the Luwu Regency, the project is expected to bolster Macmahon’s presence in the region while leveraging its established mining expertise.

Under the seven-year agreement, Macmahon will deliver open-cut mining services, including drilling, loading, hauling, and site development. The contract also includes an option to extend for an additional five years. Work at Awak Mas is set to begin 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.”

To support the project, Macmahon plans to utilize key mining equipment from its current fleet, with $17 million allocated for growth capital over the first four years of operations. Despite the project’s scale, the company has maintained its fiscal year 2025 (FY25) capital expenditure at $230 million, including its annual growth capital target of $30 million. Macmahon’s underlying earnings guidance for FY25 remains at A$160–170 million, with no anticipated impact on net debt levels.