Decmil, a wholly owned subsidiary of Macmahon (ASX:MAH), has been awarded a $120 million contract by Rio Tinto (ASX:RIO) for its West Angelas Sustaining Project in the Pilbara region of Western Australia.
The Western Hill contract includes the construction of a heavy haulage road, light vehicle access roads, and associated drainage works, with work scheduled to begin in January 2026 and completion expected in 2027.
The award is part of a newly established earthworks framework agreement between Decmil and Rio Tinto for projects in the Pilbara. Macmahon’s FY26 guidance remains unchanged.
Managing Director and CEO Michael Finnegan said the contract strengthens the company's strategic relationship with Rio Tinto and supports the growth of its civil infrastructure business.
"This award brings a total of $201 million in civil contract wins for Decmil with Rio Tinto, including the Brockman MEM Project ($81 million), generating substantial earnings momentum into the second half of FY26 and FY27," Finnegan added.
At the time of reporting, the share prices of Macmahon and Rio Tinto were $0.71 and $148.84.