Macmahon Underground has been selected by Medallion Metals as the preferred tenderer for the underground mining contract at the Ravensthorpe gold project in Western Australia, marking another step towards development.
The proposed contract covers primary development, portal establishment, production and associated works at the project. Subject to final agreement and execution of the contract, work is expected to begin towards the end of the year and will continue for around three years.
The contract is estimated to be worth approximately $240 million, around $20 million below the contractor pricing assumption used in the project’s feasibility study for the same package of works.
Medallion said the competitive tender process attracted strong interest from experienced underground mining contractors before Macmahon was selected as the preferred bidder.
Managing director Paul Bennett said Macmahon’s underground mining experience, competitive pricing and understanding of Ravensthorpe’s requirements were key factors in the selection.
“Importantly, Feasibility assumptions are proving robust,” Bennett said in a statement.
“We look forward to finalisation of contract documents and mobilisation to site for the commencement of underground mining at Ravensthorpe.”
The appointment comes as Medallion progresses other development activities, with the Ravensthorpe mine now fully permitted and box-cut excavation scheduled to commence in August.
Macmahon managing director and chief executive officer Michael Finnegan said the company was looking forward to working with Medallion to bring Ravensthorpe into production.
“We believe the best outcomes are achieved through genuine partnerships built on trust, transparency and a shared commitment to success,” Finnegan said in a statement.
He said the project also presented opportunities for local communities through employment, development and business activity.
Medallion said the proposed mining contract, together with development activities already underway, provides further confidence in its plans to advance Ravensthorpe towards production.