BHP extends Macmahon Olympic contract

Construction and mining contractor Macmahon Holdings has secured an extension of its contract at BHP Billiton's Olympic Dam mine, valued at more than $110 million.

The company has been delivering services to the South Australian copper and uranium mine since 2004, and has had its contract extended four times.

"Over the past five years we have added further capacity to our Mining Business, and as such, we have been able to offer a more comprehensive package of services to our customers," chief executive Nick Bowen said.

Around 180 people are currently employed on site, with the contract extension to be effective from next month.

Shares in Macmahon were up two cents at 38c at 10:45 AEST.

The announcement is below:

Macmahon Holdings Limited (ASX:MAH) announced today that it had been awarded a two year contract extension at BHP Billiton's Olympic Dam copper and uranium mine in South Australia.

The contract involves underground mine development works, including shotcreting, cable bolting and other associated works, with an estimated value of more than $110 million.

Macmahon Chief Executive Officer, Nick Bowen, said Macmahon has been operating at Olympic Dam since 2004 and has consistently delivered safe, productive and quality services.

"Our contract at Olympic Dam has now been extended four times, and on each occasion, our team of experienced people have stepped up and responded to the client's requirements.

"Over the past five years we have added further capacity to our Mining Business, and as such, we have been able to offer a more comprehensive package of services to our customers," Mr Bowen said.

Approximately 180 people are currently employed on site, with the contract extension to be effective from August 2009.