Macmahon Holdings Limited says it has been selected by PT Freeport Indonesia (PTFI), a subsidiary of Freeport-McMoRan, as the underground mining services contractor at the Kucing Liar mine located in central Papua, Indonesia.
The mine is part of one of the world’s largest copper-gold deposits and the current mine life is expected to run until 2041 in line with existing operating permits.
The scope of work for Macmahon includes the development of all underground fixed facilities within the mine. The contract term of 34 months will commence immediately, with the first 12 months valued at A$36 million ($23 million), and the remaining years agreed annually.
Macmahon’s FY 2026 guidance and capital expenditure budget remain unchanged.
PTFI commenced long-term mine development activities for its Kucing Liar deposit in October 2021, which is expected to produce over 7,000 MIb (3.2 Mt) of copper and 6 Moz of gold between 2029 and the end of 2041, PTFI says. The Kucing Liar underground deposit lies on the southern flank of and underneath the southern portion of the Grasberg open pit at the 2,605-m elevation level. Development activities are expected to continue over an approximate 10-year timeframe. At full operating rates, annual production from Kucing Liar is expected to approximate 560 MIb (254,012 t) of copper and 520,000 oz of gold, providing PTFI with sustained long-term, large-scale and low-cost production.
Managing Director and CEO of Macmahon, Michael Finnegan, said: “I would like to extend my sincere thanks to PT Freeport Indonesia for this award and for the opportunity to be part of the Kucing Liar project. We are excited about continuing our collaboration to support the growth and development of the project and hope to expand our relationship and scope with the team over time. This recognition reflects our ongoing commitment to delivering value, fostering long-term partnerships in the region and developing Indonesia’s national workforce.”
