Macmahon wins $129m Rio contracts

Mining and construction contractor Macmahon has announced it has won three contracts for Rio Tinto's Pilbara iron ore expansion worth a combined $129 million.

Under the first contract, Macmahon will construct 52 kilometres of rail line from Rio's existing Hope Downs 1 mine to the Hope Downs 4 mine, and construct two rail bridges spanning over creeks in the area.

Planning work is expected to being immediately, with construction kicking off in October and lasting approximately 10 months.

The second contract involves the design and construction of two bridges over the rail line at Cape Lambert.

Design work will start immediately, and construction of the first bridge will begin in September.

The second bridge is expected to be finished by February 2013.

The third contract is for earthworks and foundations work required to install a new track-mounted stacker at Cape Lambert.

Macmahon said mobilisation had commence and the works would be completed by late December.

The company said a key driver in winning the contracts was its commitment to maximising indigenous involvement in its projects.

Macmahon chief executive Nick Bowen said the contract was further evidence of the company's ability to deliver significant infrastructure projects.

"It also emphasises the strength of Macmahon's combined offering, not only as a mining contractor but in the delivery of infrastructure for new and existing resources operations," Mr Bowen said.

Rio Tinto is in the process of expanding its Pilbara iron ore operations from 190 million tonnes per annum to 330mtpa.

Macmahon shares were largely steady today, gaining 0.9 per cent to 56 cents by close of trade.