Decmil, a wholly owned subsidiary of Macmahon, has been awarded a contract by Rio Tinto valued at A$120 million for the West Angelas Sustaining Project located in Western Australia's Pilbara region.
The contract, known as the Western Hill contract, covers the construction of a heavy haulage road, light vehicle access roads, and associated drainage systems. Work is scheduled to begin in January 2026 and is expected to be completed in 2027.
This contract is part of a new earthworks framework agreement established between Decmil and Rio Tinto for various projects within the Pilbara. Macmahon's financial guidance for the fiscal year 2026 remains unchanged following this award.
Macmahon managing director and CEO Michael Finnegan stated, "With this award, we are pleased to further strengthen our strategic relationship with Rio Tinto and partner with them to deliver the bulk earthworks project at the West Angelas project." He added, "It helps build momentum in our civil infrastructure business transitioning to larger civil projects. This award brings a total of $201m in civil contract wins for Decmil with Rio Tinto (Brockman MEM $81m, WASP $120m) which generates substantial earnings momentum into the second half of FY26 and FY27."
The West Angelas open-pit iron ore project is managed by the Robe River joint venture. It began operations in 2022 and is owned by Rio Tinto (53%), Mitsui Iron Ore (33%), and Nippon Steel (14%).
In December 2025, Decmil received a notice of award from Rio Tinto for the Mobile Equipment Maintenance (MEM) Workshop Expansion project at the Brockman 4 mine in the Pilbara. That contract involves constructing a new MEM workshop, an office, bulk lube storage, and an oily water system. Work on that project is set to start in early 2026, with completion anticipated by April 2027.
In May 2025, Decmil secured two contracts worth a combined total of approximately A$80 million, which enhanced Macmahon's order book.