Macmahon has been awarded a 20-month contract extension to continue mining services at the A$1.76bn ($1.18bn) Byerwen coking coal mine in the Bowen Basin in Queensland, Australia.

The contract extension comes into effect starting from 1 November 2023 and runs through to 30 June 2025.

According to the Australia-based mining services provider, the contract extension will generate nearly A$440m ($295m) in revenue over the extension period.

Located 20km west of Glenden, the Australian coal mine in the Northern Bowen Basin is capable of producing up to 10 million tonnes of hard coking coal per year.

Byerwen Coal, a joint venture between QCoal Group (85%) and Japan-based steel manufacturer JFE Steel (15%), owns the Byerwen coal mine.

Macmahon has been responsible for open cut mining services at the Byerwen project since the mine’s establishment in 2017. The mining services contractor employs over 520 people on site.

In June 2020, the company was awarded A$700m ($469m) contract extension for the coking coal mine that was in effect from June 2020 until 1 November 2023.

With Macmahon already having its personnel and mining fleet deployed and operating at the Byerwen coal mine, there would be no need for any new capital expenditure or increase in working capital.

Macmahon CEO and managing director Michael Finnegan said: “We are very pleased to secure an early extension at Byerwen where we have worked closely with Byerwen Coal since the mine commenced operation in 2017.

“Importantly, this extension allows us to provide our workforce with certainty of increased tenure. Byerwen Coal has been an excellent partner reflecting the success and strength of our relationship that has been built on the foundation of operational delivery over several years.”

The Byerwen coal mine comprises four mining zones with a total of eight open-cut pits. It has two coal handling and preparation plants as well as two train loading facilities, including rail loop and spur lines that are linked to the existing line to Abbot Point.