Australia-based mining services company Macmahon has secured a A$1.1bn ($766m) contract to provide load and haul services for the Greenbushes lithium project in Western Australia.

The contract has been awarded by Talison Lithium Australia, a JV arrangement owned by Tianqi Lithium Energy Australia and the Albemarle Corporation.

Under the contract, the mining services company will undertake open-cut mining activities of load and haul and crusher feed at the mine site.

The seven-year contract has an option for extension for up to two years.

Macmahon plans to start load and haul services from 1 July 2023.

Macmahon CEO and managing director Michael Finnegan said: “We are delighted to finalise this contract with Talison Lithium for its Greenbushes lithium project. This contract will add approximately A$1.1bn to our order book, which delivers on our commodity diversification strategy into future relevant commodities.

“We have built a strong relationship with the Talison Lithium team and look forward to developing this project with them.”

Located approximately 250km south of Perth and Fremantle, the Greenbushes lithium project is undergoing expansion to increase its production capacity and maintain a production life of more than 20 years.

The lithium feedstock from the Greenbushes mine is supplied to Tianqi Lithium Energy Australia’s lithium hydroxide facility in Kwinana.

Last year, the McGowan Government said the Greenbushes mine is expected to help increase the state’s participation in global battery and critical mineral supply chains.