Decmil has been awarded a $123 million road upgrade contract by Covalent Lithium on the Mount Holland Lithium Project in Western Australia.
Covalent Lithium is a 50:50 joint venture between Australian conglomerate Wesfarmers (ASX:WES) and Sociedad Quimica y Minera de Chile (NYSE:SQM).
Scope of Decmil’s works includes upgrading the logistics link between the Great Eastern Highway and Covalent’s Mount Holland site, with about 113km of road upgrades to take place.
The Macmahon (ASX:MAH) subsidiary began work on the Mount Holland project in August 2023 following receipt of a Limited Notice of Award in July.
About $59 million 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.
The remaining value of the project works adds a further $64 million in revenue to Macmahon’s secured order book supporting the FY25 revenue guidance range of $2.4 billion to $2.5 billion.
Macmahon CEO Michael Finnegan says Decmil is off to a strong start in converting our $11.6 billion tender pipeline having now secured some $240 million 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,” says Finnegan.
Strategically positioned for global markets, Covalent’s flagship project comprises of the Mount Holland mine and concentrator, and the Kwinana refinery.
Poised to produce about 50,000 tonnes of lithium hydroxide annually – a capacity which translates to powering about a million electric vehicles – Covalent reports it marks a significant step towards a cleaner transportation landscape.
With the completion of the refinery construction and our first lithium hydroxide product anticipated in mid-2025, Covalent says it is prepared to shape the future of energy in Western Australia and across the globe.
Write to Adam Orlando at Mining.com.au
Images: Decmil
