Macmahon Holdings Ltd. (MAH.AU) and Leighton Holdings Ltd. (LEI.AU) said Wednesday that their joint venture has signed a A$500 million contract to build a railroad for BHP Billiton Ltd.'s (BHP) iron ore unit in Western Australia state.

The railroad forms part of BHP's Rapid Growth Project 5, or RGP5, in the state's Pilbara region and the contract requires the partners to duplicate 220 kilometers of the existing rails, between Port Hedland and Shaw Siding on the Mount Newman line, the companies said.

The contract works also include building more than 1,000 camp rooms, 1.2 million cubic meters of earthworks, construction of 10 new dual track bridges and installation of 840 kilometers of fiber optic cable, they said.

Work will begin immediately and is expected to be completed during the second half of 2010, the companies said.

-By Andrew Harrison, Dow Jones Newswires; 61-3-9671-4323; andrew.harrison@dowjones.com
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