Fortescue Metals Group has awarded Downer EDI an expanded mine services contract at the Christmas Creek iron ore mine at the expense of rival contractor Macmahon Holdings.
Fortescue has taken the mine services contract for Christmas Creek mine 2 away from Macmahon and has made it part of the extended contract of Downer who currently operate the Christmas Creek 2 mine.
Macmahon’s work at Christmas Creek will wind up at the Western Australian mine in April of this year when Downer will officially take over.
Around 700 Macmahon employees with be affected by the loss of contract believed to be worth $260 million to the company.
Downer’s expanded contract includes drill and blast and load and haul of overburden and iron
ore.
Chief Executive Officer of Downer, Grant Fenn, was restrained in expressing his delight over the new arrangements.
“This expanded contract highlights the strength of our relationship with Fortescue and the quality of our service,” Mr Fenn said.
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