The proposed scope of work involves the hire and maintenance of 21 large capacity dump trucks and ancillary equipment over a five-year term.

Macmahon will also provide maintenance to client equipment at the Bowen Basin site, which is jointly owned by QMetco, POSCO Australia and Nippon Steel Australia.

The contract is estimated to generate around $250 million in revenue for Macmahon, requiring a capital expenditure of around $50 million.

The majority of the cost falls on the acquisition of 220-tonne dump trucks, which are expected to have a life of 10 years.

Macmahon chief executive and managing director Michael Finnegan said the company was very pleased to be selected as the preferred equipment and maintenance provider for the project.

“We are looking forward to delivering for a new client in Queensland,” he 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 mine, which is an open cut, truck and excavator operation, produces low volatile pulverised coal injection (PCI) coal.

This is exported to Asian steel mill customers, with the company’s key markets including South Korea, Taiwan and Japan.