St Barbara Limited has advised that, following an extensive tender process, Macmahon Holdings Ltd has been appointed as the new underground mining contractor at the Gwalia gold mine in Western Australia.
The initial contract term is five years, with an option for St Barbara to extend for a further three-year period. St Barbara said the appointment brings an opportunity to enhance the performance of the Gwalia mine. The change of underground operator and new contract terms are an important aspect of its Building Brilliance company transformation.
St Barbara Managing Director and CEO, Craig Jetson, said St Barbara is committed to install a performance-led-culture at Gwalia.
“This change is indicative of St Barbara’s determination to enliven Gwalia’s future, to safely and sustainability rebuild operational performance and to secure future investment by delivering predictable and strong financial returns,” Mr Jetson said.
“We would like to thank Byrnecut for their service over the past seven years and look forward to an orderly and effective transition. During their handover period management will be focused on the well-being of our people and continuity of operations.”
The new contract terms dictate an appropriate risk responsibility between the contractor and St Barbara and is expected to improve underground mining performance and productivity, while reducing costs. Worker headcount is expected to remain stable.
St Barbara and Macmahon are expected to sign the mining services agreement in March 2021.
The Gwalia Underground mine at Leonora Operations, acquired by St Barbara in 2005, is the company’s cornerstone asset. It produced 171,156 ounces of gold in the 2020 financial year.