St Barbara (ASX:SBM)
advises that, following an extensive tender process, Macmahon Holdings has been appointed the underground mining contractor at the Gwalia mine at Leonora Operations in Western Australia.
The initial contract term is five years, with an option for St Barbara to extend for a further three-year period.
The new contract terms are expected to improve underground mining performance and productivity, while reducing operating costs.
Worker headcount is expected to remain stable when the agreement is signed later this month.
Shares in St Barbara (ASX:SBM)
are trading 1.51 per cent higher at $2.02.