Macmahon confirms $90M contract win

The ASX noted a change in the price of Macmahon’s shares from 72.5c on April 6 to an intra-day high of 80c and again on April 7, with shares lifting from 79c to an intra-day high of 88.5c on April 8. Macmahon originally confirmed it was not aware of the award of a contract by any government department within the next week, although the company later acknowledged that following its response to the ASX price query it was informed of a likely $90 million material contract award.The company also noted it was not aware of any takeover offer from Leighton Holdings. On April 12, Macmahon requested its shares be placed in a trading halt, pending the release of an announcement.Today the company said the Coal Stream Alliance, which comprises Aurecon Hatch and Parsons Brinckerhoff as designers, and the Macmahon MVM joint venture as constructors, will undertake upgrade and expansion works along the rail corridor between the Abbot Point Coal Terminal and Bogie River, southwest of Bowen.The works include construction of two bridges, the extension of passing loops, rail duplication and pavement strengthening and laying.Work is expected to start onsite mid-May with the project due to be completed by mid-2011.The GAP expansion project is designed to support infrastructure enhancements at the Abbot Point Coal Terminal and increase port capacity to 50 million tonnes per annum by mid-2012.

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