Gindalbie Metals Limited (GBG) is pleased to announce the award of another key construction contract for the Karara Iron Ore Project in Western Australia. Karara Mining Limited, the Joint Venture company, has awarded the contract for rail earthworks and track laying for the 85km spur line servicing the project to Macmahon a leading ASX-listed contracting group (MAH).
The contract, with an approximate value of $86 million, is for construction of the spur line connecting Karara to Tilley Siding, near Morawa, where it connects with the existing railway line running from Morawa to Geraldton. The track itself will be supplied by Gindalbie’s Karara Project partner Ansteel, which is the biggest producer of rail in China and a world-leader in the efficient production of high-quality rail products.
Gindalbie’s Managing Director Mr Garret Dixon said Macmahon had been selected because of its strong project knowledge and extensive experience in constructing remote location iron ore railways, having undertaken work on both Rio Tinto’s and BHP Billiton’s rail lines in the Pilbara region. “Macmahon has played a leading role in the redevelopment and construction of some of the busiest rail networks throughout urban and rural Australia and was a logical choice for us,” Mr Dixon said. “We are also pleased to be working with another West Australian-based company to deliver an additional major contract at Karara.”
Macmahon Managing Director and Chief Executive Officer Mr Nick Bowen said the award reinforced Macmahon’s depth of experience in rail construction and its strong presence in Western Australia’s resources market. “This is an excellent win for our Construction Business. We have delivered numerous infrastructure contracts in Western Australia’s resources sector over many years and are very pleased with the opportunity to establish a new relationship with Gindalbie and Ansteel on the world-class Karara Project,” he said.