Services provider Macmahon Holdings has been selected as the preferred tenderer for maintenance services and equipment hirer for the Foxleigh open-cut coal operation in the Bowen Basin of Queensland, Australia.

The deal is effective 1 March 2021, the company said, and will carry a five-year term.

Under its terms, Macmahon will hire and maintain 21 large-capacity dump trucks and other ancillary equipment, as well as maintain client-owned equipment.

The company, which estimated the contract would inject about A$250 million in revenue to its books, will also require capex of about $50 million. The majority of the expense, it said, would be utilised to acquire multiple 220-tonne dump trucks with 10 years of useful service life.

“We are looking forward to delivering for a new client in Queensland,” CEO and Managing Director Michael Finnegan said. “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.”

The Foxleigh truck-and-excavator operation produces low-vol PCI coal for Asian steel mill customers.