The mining contractor has received a 2.5-year contract extension at Eaglefield mine which is 200 kilometres southwest of Mackay in the Bowen Basin region.

The contract extension will see Macmahon continue to undertake a full scope of mine works, including the mining of coal, the interburden and overburden, drill and blast activities and project management.

Macmahon chief executive officer Nick Bowen said the win highlighted the company’s strong performance in the mining sector and the value that Macmahon was able to provide clients over the long term.

“This is the second coal contract we have been awarded in Queensland in recent months, and it is pleasing to see that we are successfully consolidating our position in the coal sector and maintaining our long-standing relationship with Peabody Energy.

“We have been operating at the Eaglefield site since 2003 and this renewal will see us remain onsite until 2013,” he added.

In March, Macmahon secured a $A190 million contract from Syntech Resources to develop and operate the new Cameby Downs coal mine in Queensland’s Surat Basin.

Shares in Macmahon have gained 2.5c to 71c in late morning trade.