Macmahon Holdings Limited subsidiary, Decmil, has been awarded a A$123 million ($83 million) road upgrade contract by Covalent Lithium Pty Ltd on the Mount Holland lithium project in Western Australia.

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

Decmil commenced work on the project in August 2023 following receipt of a Limited Notice of Award in July 2023. Approximately A$59 million of works had already been completed during the 2024 financial year. 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 A$64 million in revenue to Macmahon’s secured order book supporting the 2025 financial year revenue guidance range of A$2.4-2.5 billion.

Macmahon’s CEO and Managing Directo, Michael Finnegan, said: “Decmil is off to a strong start in converting our A$11.6 billion tender pipeline having now secured approximately A$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.”

Covalent has developed and is now operating the Mount Holland project, which, it says, is a unique, fully integrated producer of battery-quality lithium hydroxide in Western Australia. The company says it is targeting 75% recovery of spodumene in its concentrator and expects to produce more than 380,000 t/y of spodumene concentrate.