Macmahon secures $355M mining contract

• Macmahon has signed a three-year contract valued at $355 million for underground development and production mining services at the Mt Marion Lithium Project.
• The contract strengthens the company's order book and its position in future-facing commodities, driving an immediate positive movement in its equity valuation.
• The contract forms part of a broader development plan by the asset owners to transition the site into a combined open pit and underground operation.

Macmahon (ASX:MAH) has secured a three-year underground mining contract valued at $355 million at the Mt Marion lithium operation in Western Australia.

This agreement follows a final investment decision in May after a diamond drilling programme at the site was previously paused due to soft lithium market prices.

"This is a high-quality, long-term opportunity to collaborate alongside strong, aligned partners and positions Macmahon Underground firmly on the global stage as a tier one contractor in future-facing commodities," said Macmahon Holdings Managing Director and CEO Michael Finnegan.

The scope of works includes all underground development and production mining operations at the project, with the agreement containing an option to extend services for a further one year.

Following the announcement, the Macmahon Holdings share price was up at $0.94.

The company offers a comprehensive suite of civil infrastructure, surface mining, and underground mining services to resource projects across Australia and Southeast Asia.

The Mt Marion lithium asset is located 70km south of Kalgoorlie and is jointly owned on a 50-50 basis by Mineral Resources (ASX:MIN) and Jiangxi Ganfeng Lithium.