UPDATE 2.20pm: Ausdrill has won a $US540 million contract for Resolute Mining at its flagship Syama gold mine in Mali, West Africa.

The five-year mining services contract will begin on September 1.

Under the terms of the contract, Ausdrill's wholly owned subsidiary African Mining Services Mali will perform all contract mining services at the project.

"AMS has reached an agreement with the incumbent contractor to purchase the equipment currently being used at the operation," Ausdrill said in a statement.

"Further equipment will be obtained by AMS as needed in accordance with project expansion requirements."

Ausdrill managing director Ron Sayers said it was the single biggest contract ever awarded to the company and recognised its ability to tackle large scale mining service projects in West Africa.

The contract is part of a major expansion of the Syama gold project by Resolute.