Mining and civil infrastructure services provider Macmahon Holdings has been appointed by PT Citra Palu Minerals (CPM) to provide underground mining services for the Poboya gold project in Sulawesi, Indonesia.

The interim contract will involve Macmahon in all underground mining development and ore mining activities including drilling, loading, hauling, equipment maintenance and mine services support, with the expectation to finalise a five-year alliance-style contract.

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The contract commences immediately under a cost-plus arrangement and is expected to contribute approximately A$317m to Macmahon’s order book.

CPM will supply all major equipment and infrastructure for the project as part of its mine operating strategy.

Macmahon is currently providing open-cut mining services at the Poboya project under a contract awarded in September 2024. The $54m contract is expected to be completed in September 2026.

Macmahon CEO and managing director Michael Finnegan said: “We are delighted to continue working with CPM on the next stage of the Poboya gold project, which will see us expanding our services to include both surface and underground.

“We look forward to building on our valued relationship and are focused on growing the Poboya asset while continuing to drive safety and performance outcomes for our client.”

In a separate development earlier this year, Cyprium Metals formed a strategic alliance with Macmahon to expedite the redevelopment of the Nifty Copper Complex in Western Australia.

Additionally, Macmahon was awarded a $463m contract by PT Masmindo Dwi Area for the Awak Mas gold project in South Sulawesi, Indonesia.

This contract includes open-cut mining services across a 14,390-hectare area, further solidifying Macmahon’s presence in the region’s mining sector.