Macmahon Holdings has been awarded an underground mining services contract for the Poboya gold project in Sulawesi, Indonesia. The contract, granted by PT Citra Palu Minerals (CPM), a subsidiary of PT Bumi Resources Minerals Tbk, marks a significant expansion of Macmahon’s role at the site, where it currently provides open-pit mining services.
Macmahon Expands Role at Poboya Gold Project
Under this interim contract, Macmahon will handle all underground mining development and ore extraction activities, including drilling, loading, hauling, equipment maintenance, and mine services support. The project will initially operate under a cost-plus arrangement until a formal five-year alliance-style underground mining services contract is finalized.
The Poboya gold project represents a key growth opportunity for Macmahon, with the contract expected to add approximately A$317 million ($200 million) to the company’s order book.
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A Strategic Move for Long-Term Growth
As part of the mine’s operating strategy, CPM will supply all major capital equipment and infrastructure for the project. This approach enables Macmahon to focus on delivering safe, efficient, and cost-effective mining services while leveraging CPM’s investment in critical assets.
Macmahon CEO and Managing Director Michael Finnegan expressed confidence in the company’s ability to execute the expanded contract successfully.
“We are delighted to continue working with CPM on the next stage of the Poboya gold project, expanding our services to include both surface and underground mining,” Finnegan said. “We look forward to strengthening our partnership and remain focused on delivering strong safety and performance outcomes for our client.”
Strengthening Indonesia’s Gold Mining Sector
Macmahon’s continued involvement in the Poboya gold project underscores Indonesia’s commitment to developing its domestic gold mining sector. With rising global demand for gold and increased investment in underground mining technologies, this partnership positions CPM and Macmahon to optimize resource extraction and long-term operational efficiency.
As the Poboya gold project moves into its next phase, Macmahon’s expertise in underground mining is expected to play a crucial role in maximizing productivity while maintaining strict safety and environmental standards.
With the contract commencing immediately, Macmahon is set to make a lasting impact on the Poboya gold project, reinforcing its position as a leading mining services provider in Southeast Asia.
