Dow Jones quoted Macmahon Holdings Limited and Leighton Holdings Limited as saying that their JV has signed a AUD 500 million contract to build a railroad for BHP Billiton Limited iron ore unit in Western Australia state.

The companies said that the railroad forms part of BHP's Rapid Growth Project 5 or RGP5, in the state's Pilbara region and the contract requires the partners to duplicate 220 kilometers of the existing rails, between Port Hedland and Shaw Siding on the Mount Newman line.

They said that the contract works also include building more than 1,000 camp rooms, 1.2 million cubic meters of earthworks, construction of 10 new dual track bridges and installation of 840 kilometers of fiber optic cable.

Work will begin immediately and is expected to be completed during the second half of 2010.

(Sourced from Dow Jones)