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MACA Interquip establishes the King of the Hills site. Image: Red 5.

Red 5 is set to contract Macmahon for mining services at the King of the Hills (KOTH) gold mine in Western Australia in a move to have the operation up and running by early 2022.

The $650 million-plus contract involves the provision of both surface and underground mining services over a five-year term.

Red 5 anticipates the final contract documentation will complete in the June quarter, with the contract commencing in the March quarter next year.

Last Thursday saw the 2.4 million ounces, 16-year project receive the Western Australian Government’s approval for mining.

Red 5 also appointed a mine manager for the KOTH project, Andrew McRae, who previously worked for Evolution Mining at the Cowal gold mine in New South Wales.

Red 5 managing director Mark Williams said these latest developments promised to benefit the Western Australian gold project over the long-term.

“Following a rigorous tender process, we are delighted that, subject to final agreed contract terms, Macmahon will be appointed as mining contractor for both the KOTH open pit and underground mines,” Williams said.

“We see a number of important operational efficiencies and cost benefits in having both mining operations managed by a single contractor.

“We are also very pleased to welcome Andrew McRae to the Red 5 team as the KOTH mine manager… he will play a key role in planning and preparations to ensure we remain on commencing activities at the KOTH gold mine in early 2022.”

Macmahon chief executive and managing director Michael Finnegan said he was confident in his company’s plans for growth.

“We are delighted to be in advanced discussions with Red 5 for its King of the Hills gold project in Western Australia. We have a strategy to expand our presence across the mining services value chain, and this project highlights the benefits of being able to offer a combined surface and underground mining solution from the outset,” Finnegan said.

“We look forward to continuing our relationship with the Red 5 team and supporting their development of this important project.”

Red 5 expects to pour first gold at KOTH in mid-2022.