The Department of Mines and Petroleum has issued a prohibition notice to cease blasting and an investigation is underway.
Macmahon provides blasting services at the mine.
"DMP has issued a prohibition notice ceasing blasting operations at McMahons operations at Christmas Creek," Department of Mines and Petroleum executive director of mines safety Simon Ridge said.
"The notice was issued following an incident which occurred on Friday morning during charging operations in a mining area.
"No explosives were detonated and no one was injured as a result of the incident."
Fortescue Metals Group said it had no comment on the issue.
Macmahon's five-year full mining services contract at Christmas Creek started in January 2013. It provides drill-and-blast operations, along with other mining services.
FMG has already taken over processing facilities from a contractor at Christmas Creek due to safety concerns, and CEO Nev Power told a media briefing last month the company was closely monitoring the performance of its contractors.
The DMP investigation follows a separate incident recorded at FMG's Solomon mines in January, where workers were left inside a blast-exclusion zone.
The January investigation was announced along with three other reports, including two water truck incidents and an incident involving an integrated tool carrier and a worker who received minor injuries.
The new blasting incident is the latest safety issue at Christmas Creek, where contractor Kurt Williams was killed in a crushing accident in August and Allen Zuvela was killed in an accident at a heavy vehicle workshop in late December.