Macmahon Holdings (ASX:MAH) was selected by PT Citra Palu Minerals as the underground mining services contractor for the Poboya gold project in Indonesia, according to a Friday Australian bourse filing.

It currently provides open-cut mining services at the project.

Under the interim scope of works, Macmahon will provide underground mining development and ore mining activities including drilling, loading, hauling, equipment maintenance, and mine services support.

It will remain on foot under a cost-plus arrangement until Macmahon and Citra Palu Minerals finalize and execute an alliance-style five-year underground mining services contract.

While the total contract value is still yet to be determined, it is anticipated that AU$317 million will be added to Macmahon's orderbook. The mining and civil infrastructure services firm maintained its guidance for the current fiscal year.

Citra Palu Minerals, a unit of PT Bumi Resources Minerals, will supply all major capital equipment and infrastructure for the project.

Company shares inched up 2% in recent trade.

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