Macmahon has received an $86 million contract from Gindalbie Metals to construct a service rail line for the Karara iron ore project in Western Australia.
The contractor will carry out the rail earthworks and track-laying to build an 85 km spur line from Karara to Tilley Siding, where it will join the existing Morawa to Geraldton line.
The track will be supplied by Chinese steel producer and Karara partner Ansteel.
Gindalbie managing director Garret Dixon said Macmahon’s previous work with BHP Billiton and Rio Tinto in the Pilbara was a key reason it was awarded the contract.
“Macmahon has played a leading role in the redevelopment and construction of some of the busiest rail networks throughout urban and rural Australia and was a logical choice for us,” he said.
“We are also pleased to be working with another West Australian-based company to deliver an additional major contract at Karara.”
Macmahon managing director Nick Bowen said the contract was an excellent win for the company’s construction business.
“We have delivered numerous infrastructure contracts in Western Australia’s resources sector over many years and are very pleased with the opportunity to establish a new relationship with Gindalbie and Ansteel on the world-class Karara Project,” he said.
Macmahon subsidiary MVM Rail will carry out components of the contract.
“MVM Rail will undertake track-laying work, drawing on its specialised capabilities and expertise to deliver this contract,” Bowen said.
An initial stockpile of rail sleepers for the spur line has already been delivered and the rail has been procured in preparation of this contract.
Gindalbie will be awarding several construction, equipment and services contracts totaling $300 million in the next few months, taking the total value of contracts awarded to $1 billion.
The Karara project is located 500 km north-east of Perth and 225 km east of Geraldton in Western Australia’s Mid-West region.