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Macmahon's original $75 million contract covered two years, of which the contractor has completed one year.
The extension involves the removal of additional material over the next two years.
Macmahon currently has 200 personnel at the site and operates four excavators and trucks. The extension will allow Macmahon to upgrade the excavators to larger units and add four new trucks to the fleet.
“Macmahon has a number of coal contracts on the east coast of Australia and we continue to look for opportunities to build our market share in this buoyant sector," CEO Nick Bowen said.
