Hancock Prospecting subsidiary Atlas Iron has awarded a $38 million contract to MACA for early civil work at the Corunna Downs iron ore project in the Pilbara, nearly two months after it was approved by the state government.
Atlas sought approval from the Environmental Protection Authority in May last year.
The project is located 33 kilometres south of Marble Bar and is expected to produce around 4 million tonnes of iron ore per annum over a five- to six-year mine life.
Initial capital costs are estimated between $47 million and $53 million.
Atlas has contracted MACA to upgrade a 22km section of public road and develop 13km of road access to the site.
MACA said it would employ around 80 people for the works, which are expected to begin in June.
The Welshpool-based contractor has previously provided services at Atlas’s Pardoo, Mount Dove, Abydos and Wodgina operations in Western Australia.
MACA is currently providing crushing services for Atlas’s Mount Webber operations.
MACA chief executive Mike Sutton said the new contract demonstrated the company’s civil capability in mining services.
At the same time, MACA announced it had received a 12-month extension to its Eastern Ridge mobile crushing project with BHP.
The new work is in addition to the $US230 million ($A376 million) mining contract awarded to MACA on Friday for work at Emerald Resources’ Okvau gold project in Cambodia.
Shares in MACA were up 4.2 per cent to trade at 75 cents at 1pm AEDT.
