Macmahon plans to leverage Redsands' expertise in environmental preservation and community development while targeting work opportunities.

"Redsands is a regional business with very specialised environmental expertise, drawing on the skills of traditional owners," said Macmahon chief executive and managing director, Michael Finnegan.

Redsands was founded by Dennis Sceghi, who has worked in the mining industry as an equipment operator and contractor for over 30 years, and is also an elder of the Kultju native title group.

"With this agreement, we will be able to target new opportunities which may not have been available to us individually. We also hope to be able to create additional indigenous employment and expand our rehabilitation services in Western Australia", said Finnegan.

A report by the Western Australian Biodiversity Science Institute released in January noted that mining rehabilitation is a "major and growing issue" for Western Australia, with around 2.5 million hectares of land currently under an active mining lease.