Australia-based miner Fortescue Metals Group has announced that it has awarded Australian contract mining and construction company Macmahon Holdings Ltd the mining services contract for the expansion of its Christmas Creek mine in the Pilbara region of Western Australia.
The A$1.8 billion five-year contract includes all the aspects of mine operations including drill and blast, overburden removal, ore harvesting, maintenance of equipment and associated services for the Christmas Creek expansion.
According to Fortescue, the Christmas Creek Expansion has increased the capacity of the company's Chichester operations to 95 million mt per year and is a key component of Fortescue's expansion to 155 million mt per year by December 2013.
Shares of Macmahon Holdings jumped by 15 percent after the reports of the Fortescue deal.