Macmahon has been issued a Notice of Award for a three-year extension of its mining services contract at the Byerwen coking coal mine located in Queensland, Australia.
The extension, which is anticipated to commence in October 2025, is expected to contribute approximately A$900m ($556m) to the company’s secured order book.
The Byerwen mine is operated by Byerwen Coal, a joint venture between QCoal Group and Japanese steel producer JFE Steel.
Macmahon has held responsibility for open-cut mining operations at the site since 2017, including drill and blast, load and haul, and crusher feed services.
The latest extension will continue this scope of work under terms currently being finalised and targeted for completion before 30 September 2025.
According to Macmahon, the continuation of services will not require additional capital investment, as the company’s workforce and equipment are already established at the site. Over 800 personnel are currently employed by Macmahon at Byerwen.
Macmahon managing director and CEO Michael Finnegan said: “We are very pleased to continue as the mining contractor at Byerwen where we have worked closely with the team since the mine commenced operations in 2017.
“We will continue to refine the terms and conditions over the next few months with a focus on mutually beneficial outcomes that will enhance operational efficiencies on site. The QCoal relationship and Byerwen project have been key to the Macmahon business stabilising over the last eight years.”
Initially awarded in 2017, Macmahon’s original contract for the Byerwen project was structured as a three-year term for the greenfield development. Two subsequent extensions have followed, with the most recent covering operations through to 30 June 2025.
The newly announced extension will ensure service continuity at the site beyond that date.
The Byerwen mine is located approximately 45 minutes west of Glenden and is part of the broader Bowen Basin, a key hub for Queensland’s metallurgical coal sector.
Under the current contract terms, production at the site has scaled to 10 million tonnes of hard coking coal annually, having previously operated at half that capacity. Macmahon’s involvement spans the full range of mining services at the open-cut operation, including road and mobile plant maintenance.
Since being granted mining leases in May 2017, the Byerwen site has ramped up output and completed the initial stage of its coal handling and preparation plant.
