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AngloGold Ashanti has extended a three-year contract with Macmahon for underground mining services at the Tropicana gold operation in Western Australia.

The $352 million contract will see Macmahon continue to carry out services at the Boston Shaker underground mine, which it has been working at since 2019.

Tropicana, located 330 kilometres north-east of Kalgoorlie, is a joint venture between AngloGold and Regis Resources and is one of Australia’s largest producing gold mines.

In its current tenure, Macmahon’s scope of services has included mine development, production drilling, cable bolting and ore stoping.

“We are delighted to have been awarded an extension at Boston Shaker where we have worked to build an excellent relationship with our client, focussed on driving safety and performance outcomes,” Macmahon managing director and chief executive officer Michael Finnegan said.

“The contract extension award is a critical step toward growing the underground portfolio by 50 per cent over the next two to three years.

“With capital already deployed in the project and no new growth capital required, we expect the extension to enhance our return on capital employed (ROACE) performance – where we recently increased our target from 15 per cent to 20 per cent.”

Gold is enjoying a particularity bright day in the sun with current prices reaching higher than ever before.

The price of gold is expected to continue its run in 2024 due to various factors such as geopolitical disruptions, a weakening US dollar and rising inflation.

Beyond 2024, the Federal Government’s ‘Resources and Energy Quarterly’ (REQ) forecasts a long summer for gold.

The REQ expects gold prices to be averaging $US2030/oz in 2025. By 2029, the average gold price is forecast to be about $US1950/oz.

Australia is well positioned to capitalise on this stubborn metal’s long-term prospects, and AngloGold Ashanti’s Tropicana mine is a proven force in the sector.