Macmahon contracted for Coburn project
Strandline Resources appointed the company as preferred mining contractor for the Coburn mineral sands project in Western Australia.
Under the mining services contract, Macmahon will provide and operate a mining fleet to carry out ore mining, overburden removal, pit backfill and land recontouring.
The deal contains a term sheet outlining an alliancing-style commercial framework linked to cost and performance targets.
Macmahon will mine Coburn at a rate of 23.4 million tonnes per annum via openpit dry mining in free-dig sand, with in-pit tailings deposition, progressive backfill and rehabilitation.
Coburn’s definitive feasibility study envisages a pre-tax net profit value of A$551 million, an internal rate of return of 32% and life-of-mine EBITDA of A$1.9 billion over an initial 22.5 years.