In a joint venture between Lafarge, Holcim and Flour Mills of Nigeria, Macmahon will embark on its second operation in Nigeria early next year.
Located at a cement manufacturing plant in Mfamosing, about 40km north east of Calabar in Cross River State, Macmahon will take over exiting operations, which are expected to generate around $18 million a year.
Macmahon will take on overburden removal and the drilling, blasting, excavation and delivery of limestone, marl and shale from the quarry to the cement plant crushers. The total overburden and feed material movement is in the order of five million tonnes every year.
The Calabar quarry will be the company?s second contract in Nigeria, with Macmahon previously operating a site with Lafarge in Ewekoro.
Calabar is also Macmahon?s fifth limestone quarry across Malaysia, Indonesia and Nigeria.
“Macmahon’s increasing presence in Nigeria further strengthens our ability to continue expanding in West Africa,? said Macmahon chief executive officer Nick Bowen. “Increasing our international footprint through established clients is in direct alignment with our plan to grow steadily and control risk.”
News of the new contract was welcomed by investors, with shares rising 3.5 per cent to 59 cents after the announcement.
Macmahon employs over 3800 people at its operations in Australia, New Zealand, Asia, Mongolia and Africa.
Sources: Macmahon, West Australian Business News