Macmahon wins second quarrying contract in Nigeria

Macmahon wins second quarrying contract in Nigeria
Published: 28 November 2011

Macmahon Holdings Limited announced its subsidiary company in Nigeria has been awarded a seven year contract for quarrying operations near Calabar in Nigeria.

The contract for United Cement Company of Nigeria Limited (UniCem), a joint venture between Lafarge, Holcim and Flour Mills of Nigeria, will be Macmahon’s second operation in the country.

The new contract is to undertake quarrying operations at UniCem’s 2.5Mta cement plant in Mfamosing, about 40km north east of Calabar in Cross River State, Nigeria. Commencing in January 2012, the contract is expected to generate revenue in the order of US$18m per year.

Macmahon will take over the existing operations, which UniCem has conducted since 2008. The broad scope of work includes 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 5Mta.

Macmahon CEO, Nick Bowen, said the Calabar project was another exciting opportunity in Nigeria and securing the contract was a result of the Company’s performance at Ewekoro, the first quarry contract Macmahon secured in Nigeria with Lafarge.

‘Calabar will be our second contract in Nigeria and the fifth limestone quarry contract that Macmahon operates across Malaysia, Indonesia and Nigeria. ‘Macmahon’s increasing presence in Nigeria further strengthens our ability to continue expanding in West Africa. ‘Increasing our international footprint through established clients is in direct alignment with our plan to grow steadily and control risk.’ As part of the new contract Macmahon will take over the existing quarry employees and purchase a fleet of mining equipment from UniCem.