Macmahon wins $500m BHP contract

Macmahon Holdings has been awarded a $500 million, three-year contract extension by BHP Billiton for work at two of its iron ore mines in the Pilbara.

The contract focuses work on the Orebody 18 and Wheelarra mines, and will see Macmahon continue to provide a complete mine service including drill and blast, mining, crushing and train loading at the site.

Macmahon has been working at the mines since early 2006.

The work is in line with BHP's ambitions to lift the level of production at its Pilbara sites.

Macmahon chief executive Nick Bowen said this was a significant award for the company and demonstrated the value that Macmahon provided to its clients.

"This contract extension highlights the strong partnership that Macmahon has formed with BHP Billiton Iron Ore and we are pleased to be able to deliver additional value to the client through increased production," Mr Bowen said.

"Furthermore, ensuring a safe working environment is the number one priority for us, and we will continue to work closely with BHP Billiton Iron Ore to achieve all safety targets.

"Macmahon remains committed to providing employment and training opportunities to Aboriginal people and ensuring a high level of Indigenous participation on the project is a key priority.

"The current Aboriginal employment rate is already at around 10 per cent and Macmahon is working to increase this further."

About 330 people are currently employed on the site and this is expected to increase to
380 employees, based on the extended contract.

Shares in Macmahon were up one cent to 64c at 11:08 AEDT.