PERTH (miningweekly.com) - Iron-ore miner Fortescue Metals has awarded project house Macmahon Holdings an A$1.8-billion mining services contract for its Christmas Creek mine expansion.
The five-year contract would deliver all aspects of mine operations, including drill and blast, overburden removal, ore harvesting, maintenance of equipment and associated services, for the Christmas Creek expansion.
The Christmas Creek expansion would increase the capacity of the Chichester operations to 95-million tons a year, and was a key component of the company’s 155-million-ton-a-year expansion plans by December this year.
Macmahon chief Ross Carroll said on Tuesday that the Fortescue contract was the largest-ever mining contract for the ASX-listed Macmahon, adding that it brought the order book to some A$3.6-billion.
“This is an exciting project that builds on the existing success of our surface mining operations, securing a stronger foundation for the company’s mining-focused business over the next five years,” he added.
Mining activities have now started with the development of on-site infrastructure under way, and the mining of overburden, harvesting and drilling also in progress.