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Macmahon subsidiary Decmil wins $61m contract for Marble Bar Road upgrade in Western Australia

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By Imelda Cotton - 
Macmahon Holdings ASX MAH Decmil Marble Bar Road Upgrade Project
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Macmahon Holdings (ASX: MAH) subsidiary Decmil Group has been awarded a $61 million contract for the Marble Bar Road upgrade project in Western Australia.

The notice of award was received from HanRoy Iron Ore Projects and will cover approximately 23 kilometres of road construction works to Main Roads WA standards.

Marble Bar Road is important for agricultural and tourism industries within the East Pilbara region and also provides a critical access route for a number of mining operations and local and indigenous communities between Newman, Nullagine and Marble Bar.

No change to guidance

The work adds $61 million to Macmahon’s secured order book and is unlikely to impact the company’s revenue guidance for the 2025 financial year which remains at between $2.4 billion and $2.5b.

The Marble Bar Road contract follows a $111m contract awarded to Decmil last month for the Borumba Dam pumped hydro energy project in south-east Queensland.

Queensland Hydro is currently undertaking an exploratory works phase for the project, which requires two Frontier Camps of 84 beds each to accommodate the onsite workforce and two temporary worker accommodation camps of 336 beds each.

Decmil’s contract includes the design and construction of the temporary workers’ accommodation camps.

Decmil acquisition

Perth-based Decmil was acquired by Macmahon in April to expand its civil business.

The $127m transaction was designed to create a more resilient and scalable company, with the addition of non-mining projects offsetting the cyclical nature of Macmahon’s mining work.

It helped broaden Macmahon’s presence in Victoria and Queensland and presented opportunities for the company to expand into New South Wales and South Australia.

Infrastructure revenue

At the time, Macmahon said it would leverage Decmil’s licences for the construction of road and bridge projects throughout Australia to move towards a long-term civil infrastructure revenue target of $1b per year, representing 33% of group revenue.

By the time the acquisition was completed in August, Macmahon was operating Decmil as a wholly-owned subsidiary and had integrated its civil business under the existing Decmil branding.

Decmil will continue to be led by current chief executive officer Rod Heale.