Decmil secures $123m road upgrade contract for WA lithium project

Macmahon holdings (ASX: MAH) subsidiary, Decmil, has been awarded a $123m road upgrade contract for Covalent Lithium’s Mount Holland lithium project in WA.

The scope of works includes upgrading the logistics link between the Great Eastern Highway and Covalent’s Mount Holland site, with approximately 113km of road upgrades to take place.

Decmil commenced work on the project in August 2023 following receipt of a limited notice of award (LNoA) in July 2023.

Approximately $59m of works had already been completed during FY24.

Work under the full contract award is expected to directly create 220 jobs at its peak and be completed by April 2025.

Macmahon chief executive and managing director Michael Finnegan says Decmil is off to a strong start in converting its $11.6b tender pipeline, having now secured about $240m of new work since Macmahon acquired the business in August 2024.

“The contract award at the Mount Holland Lithium Project is the team’s second major road upgrade project since joining Macmahon, demonstrating Decmil’s strong credentials in this area, and I look forward to the successful delivery of the project for Covalent,” he said.

The remaining value of the project works adds a further $64m in revenue to Macmahon’s secured order book supporting the FY25 revenue guidance range of $2.4b to $2.5b.