In early 2022, Red 5 is set to contract Macmahon for mining services at the King of the Hills (KOTH) gold mine in Western Australia
The contract will run for 5 years and is valued at $650 million plus. The agreement involves the provision of both surface and underground mining services
The paperwork is anticipated by Red 5 to be completed by June quarter and commence March quarter 2022.
Red 5 also appointed a mine manager for the KOTH project, Andrew McRae, who previously worked for Evolution Mining at the Cowal gold mine in New South Wales.
These latest developments are said to benefit the Western Australian gold project over the long-term.
Red 5 managing director Mark Williams said, “Following a rigorous tender process, we are delighted that, subject to final agreed contract terms, Macmahon will be appointed as mining contractor for both the KOTH open pit and underground mines.”
“We see a number of important operational efficiencies and cost benefits in having both mining operations managed by a single contractor.
“We are also very pleased to welcome Andrew McRae to the Red 5 team as the KOTH mine manager… he will play a key role in planning and preparations to ensure we remain on commencing activities at the KOTH gold mine in early 2022.”
“We are delighted to be in advanced discussions with Red 5 for its King of the Hills gold project in Western Australia. We have a strategy to expand our presence across the mining services value chain, and this project highlights the benefits of being able to offer a combined surface and underground mining solution from the outset,” Finnegan said.
“We look forward to continuing our relationship with the Red 5 team and supporting their development of this important project.”