Macmahon secures $792M three-year Byerwen mining contract

Macmahon Holdings (ASX:MAH) has signed a new three-year contract to continue providing mining services at the Byerwen coking coal mine in Queensland’s Bowen Basin.

The agreement, following a notice of award announced on April 10, extends Macmahon’s role in open-cut mining, including load-and-haul and crusher feed operations, where it has been active since the mine opened in 2017.

Byerwen Coal, owned jointly by QCoal Group and Japanese steelmaker JFE Steel, operates the mine, which currently employs 545 people on site.

The new contract, effective from December, is valued at $792 million, with an option to extend for an additional two years, potentially increasing the total value to $1.32 billion.

With its workforce and mining fleet already in place, Macmahon expects no additional capital expenditure beyond its ongoing sustaining budgets, leaving FY26 guidance unchanged.

Macmahon CEO Michael Finnegan said the company was "very pleased to finalise the contract at Byerwen," noting the project’s importance to Macmahon’s growth over the past nine years.

At the time of reporting, Macmahon's share price was $0.59.