Macmahon Holdings (ASX: MAH) has announced that its wholly-owned subsidiary, Macmahon New Zealand, has secured an underground mining services contract for the Snowy River gold mine project, located south of Reefton on New Zealand's South Island.

The Snowy River project is currently operated by Tasman Mining, a wholly owned subsidiary of Endura Mining, and is scheduled to produce its first gold in December 2026. Under the agreement, Macmahon will transition the underground operations and deliver a full suite of underground mining services, including mine development, production, and backfill operations.

The contract has a term of five years, commencing in October 2026, with an estimated total value of $406.2 million. The award adds to Macmahon's growing underground mining order book, providing multi-year revenue visibility across its Australian and international operations.

Macmahon Managing Director and CEO Michael Finnegan said the contract award marks the company's return to mining in New Zealand.

"Macmahon is pleased to partner with Endura to develop the Snowy River gold mine," Mr Finnegan said. "Endura has an experienced management team, led by executive chair Jake Klein, with a clear growth strategy to build a portfolio of gold and copper assets."

Klein is best known as the former managing director and CEO of Evolution Mining, one of Australia's largest listed gold producers, which he led from its formation in 2011 through a period of significant growth and consolidation in the Australian gold sector.

"The Snowy River project is a high-grade underground gold mining project currently being developed to become one of New Zealand's largest gold operations. Our long-term contract highlights Macmahon's underground mining capabilities and establishes the company as a key partner to advance the project towards production," he added.

Mr Finnegan said the project combines Macmahon's technical and mining expertise with Endura's vision for the asset.

"We look forward to collaborating with the Endura team to deliver a safe, efficient and sustainable project while realising the full potential of this historic gold mine," he said.

The Snowy River mine has a long history dating back to 1905, when the main "Birthday Reef" was discovered by a small prospecting group. Mining operations continued for 45 years until 1951, during which the mine produced approximately 733,000 ounces (21 tonnes) of gold.

The operation ceased when the collapse of the Blackwater Shaft forced the mine's closure, despite it still operating in profitable ore at the time. The Birthday Reef is still considered one of the richest and most consistent gold reefs discovered anywhere in the world.

The project's advancement comes as gold trades near record levels, supporting the development economics of new underground gold operations globally. New Zealand has a smaller but active gold mining sector, with the country's largest operation being OceanaGold's Macraes mine on the South Island.

Ahead of market open, MAH shares were steady at $1.01, with a market capitalisation of approximately $2.154 billion.