Macmahon Holdings has been selected as the preferred tenderer to provide equipment hire and maintenance services at the Foxleigh mine near Middlemount from March next year.

Macmahon expects the work to generate about $250 million in revenue.

The proposed scope of work involves the hire and maintenance of 21 large
capacity dump trucks and other ancillary equipment over a five-year term, together with the maintenance of client owned equipment.

Macmahon expects to outlay about $50 million to deliver the service, the majority going to acquire 220-tonne dump trucks for the site.

The Foxleigh mine is an open-cut, truck and excavator operation in the Bowen Basin which produces low volatile PCI coal for Asian steel mill customers.

It is owned by QMetco (70 per cent), Posco Australia, and Nippon Steel and Sumitomo Metal Australia.

Macmahon chief executive officer and managing director Michael Finnegan said the company was very pleased to be selected as the preferred equipment and maintenance provider for the Foxleigh project, and looking forward to delivering for a new client in Queensland.

“This selection highlights our expertise in sourcing and maintaining large scale mining equipment and our ability to offer a range of service models to our clients,” he said.