Perth-based Macmahon Holdings Ltd has been awarded a $250 million mining and crushing contract for BHP Billiton's new "Orebody 18" open cut iron ore mine.The new satellite mine is located 34 kilometres east of Newman, in Western Australia's Pilbara region.Mobilisation and site establishment activities are scheduled to commence in February 2006 in preparation for plant commissioning.Macmahon CEO Nick Bowen believes this contract demonstrates how the growing strength and size of the Macmahon group can deliver major benefits to its key clients."This contract builds on Macmahon's strong relationship with the world's largest mining group," he said."We now provide services for BHP Billiton mining operations at Mt Whaleback, Leinster, Olympic Dam, Cannington and Phosphate Hill.""This four year contract also allows Macmahon the opportunity to showcase the wide range of skills and resources available within our group."In fulfilling this contract we will also ensure that we work hard to maximise the opportunities, in terms of both employment and other benefits, for the local community."Macmahon will undertake the full range of mining services including drilling, blasting, loading and hauling of iron ore and waste materials."The ore processing services will include crushing and train loading of iron ore, in addition to the maintenance of the BHP Billiton owned ore processing infrastructure."When fully operational, the new mine is expected to employ close to 140 people and produce up to 8 million tonnes per annum of iron ore for the duration of the contract.The award of this contract complements the existing open cut contract mining work that Macmahon has undertaken at BHP Billiton's Mt Whaleback iron ore mine, since November 2003.
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