The Saraji Mine has a current production capacity of 6.5 million tonnes of high grade coking coal a year and is located in the Bowen Basin, 213km southwest of the Hay Point Coal Export Terminal, near Mackay.

Macmahon has commenced mobilisation of the earthmoving equipment and a workforce of 100 personnel, with mining works scheduled to begin this month.

Chief executive Nick Bowen said Macmahon was now well placed to actively increase its market share in this buoyant sector.

“The contract provides Macmahon with another substantial mining operation and improves the balance within the group’s portfolio across coal, iron ore, diamonds, nickel, copper and other commodities,” he said.

Macmahon now has 18 opencut and underground mining projects on its books.

Meanwhile, Leighton Holdings has increased its stake in Macmahon to 11.5%.

In a shareholder filing yesterday, Leighton revealed it now holds almost 60.5 million shares in the Perth-based contractor, making it the largest shareholder.

Macmahon announced on Monday that Leighton had acquired a 4.9% stake, but it had rejected Leighton’s bid to acquire a significant stake in the company through a share placement.