Fortescue has named Macmahon as its preferred contractor for the Christmas Creek iron ore mine.
The announcement means Macmahon is in the lead to provide mining services at the operation.
If it is awarded the five year, $1.8 billion contract, it would be the largest single mining contractor for Macmahon ever.
The contract would also see it operate and maintain the fleet required for the site as Christmas Creek ramps up to full production by mid next year.
Mobilisation to site will begin under a limited notice.
Negotiations regarding the final contract are continuing and will be finalised by the end of November.