Macmahon Holdings says it has been formally awarded a $250 million contract for work at the Foxleigh coal mine near Middlemount in Central Queensland.

It comes after the mining services firm was named as preferred contractor in October.

The agreement will see Macmahon provide equipment hire and maintenance services at the Foxleigh mine over a five-year term from March 1 next year.

“The formal award of the Foxleigh project adds $250 million to our order book and further diversifies and expands our east coast presence,” Macmahon chief executive officer and managing director Michael Finnegan said.

“We are now looking forward to building on the relationship with our new client.”

The Foxleigh mine is an open-cut, truck and excavator operation in the Bowen Basin which produces low volatile PCI coal for Asian steel mill customers.

It is owned by QMetco (70 per cent), Posco Australia, and Nippon Steel and Sumitomo Metal Australia.

The proposed scope of work involves the hire and maintenance of 21 large
capacity dump trucks and other ancillary equipment over a five-year term, together with the maintenance of client owned equipment.