Macmahon awarded two overseas contracts
Macmahon Holdings Limited (MAH) announced it has been awarded two overseas quarrying contracts for the French cement producer, Lafarge, with a combined value of US$140 million. The company said they include a six and a half year contract in Nigeria and a five-year contract extension at the Kanthan limestone quarry in Malaysia.
Macmahon CEO, Nick Bowen, said the company sees the overseas market as an avenue to grow and diversify its business, and add further strength to its order book.
“Macmahon has worked with Lafarge for over five years, operating contracts in Malaysia and Indonesia and we have developed a highly successfully working relationship with this company,” Mr Bowen said.
The company said the largest of these project awards is Ewekoro in Nigeria, which is valued at US$105 million, and would see Macmahon undertake overburden removal and limestone quarrying at the existing cement plant, which is also the company ‘s first contract in Africa.
Macmahon anticipates work on the new contract to commence next month, with capital expenditure for the project totalling around US$18 million over the life of the contract.
The company said Kanthan was the first contract Macmahon won with Lafarge in 2004.
At the close of trade Thursday, Macmahon shares were trading at 62c.
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