Contract mining firm Macmahon Holdings Ltd (ASX: MAH) revealed on Friday that it has won an $86 million work project to build a train line for Gindalbie Metals Ltd's Karara iron ore mining site in the mid-west part of Western Australia.

The construction company said that it is set to work on the site's rail earthworks and lay down some 85 kilometres track spur line that would link Karara to Tilley Siding in Morawa, which is about 225 kilometre of southeast Geraldton.

Gindalbie said that the track to be used on the project would be furnished by its Chinese project partner, Ansteel, to ensure that only high quality materials would be utilised in the project.

Gindalbie managing director Garret Dixon has expressed confidence that Macmahon would meet the mining company's expectations owing to the contracting firm's vast project knowledge and experience in constructing remotely located mining railways.

Mr Dixon affirmed that Macmahon was a natural choice for the rail project due to its "leading role in the redevelopment and construction of some of the busiest rail networks throughout urban and rural Australia."

He added that it would be a pleasure to collaborate with a fellow WA company and bring another major contract on the Karara region.

Macmahon said that MVM Rail, a subsidiary of the construction firm, would be the lead player in accomplishing the work details of the Gindalbie contract.