Contract mining company MacMahon Holdings Ltd has won an AUD 86 million contract to build a train line for Gindalbie Metals Ltd's Karara iron ore project in WA's mid west.

WA-based MacMahon was awarded the contract for rail earthworks and track laying for an 85 kilometers spur line to connect Karara to Tilley Siding near Morawa, about 225kilometers south east of Geraldton.

Gindalbie said the track itself would be supplied by Gindalbie's project partner Ansteel, the largest producer of rail in China and a world leader in the efficient production of high quality rail products.

Mr Garret Dixon MD of Gindalbie said Macmahon was chosen for its strong project knowledge and experience constructing remote location iron ore railways.

Mr Dixon said “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.”

Macmahon will use subsidiary MVM Rail to carry out components of the contract.

(Sourced from AAP)