Macmahon has secured a $23 million contract to provide services for Strandline Resources at the Coburn mineral sands project in Western Australia.
Under the agreement, Macmahon will construct a 43 kilometre road access connecting the Coburn mine with the North West Coastal Highway, install other site roads, bulk earthworks, dams and drainage.
The contract is aimed towards establishing access and construction pads across various project areas, including the accommodation village, processing facilities, power station, bore fields and site offices and buildings.
Macmahon’s execution plan involves the use of local procurement initiatives and specialist sub-contractors to support the construction works.
“This commercial milestone is the first of a series of material project contracts to be awarded as part of project financing in preparation for construction and financial close,” Strandline managing director Luke Graham said.
“We are pleased to further our relationship with Macmahon and look forward to delivering the construction works safely, on time and budget.”
The agreement is subject to Strandline releasing a notice to proceed to commence the works.
The news follows a commitment for a $150 million loan from the Northern Australia Infrastructure Facility for the development of Coburn.
Strandline plans to continue securing the remaining of its project funding for Coburn and preparing a mobilisation of construction activities.
“Coburn has a world-scale ore reserve, situated in a Tier 1 location, we have binding offtake agreements in place with major customers, reputable contractors on board and project funding activities progressing rapidly,” Graham concluded.