Macmahon faces trouble in Mongolia

PERTH (miningweekly.com) – ASX-listed project house Macmahon Holdings on Wednesday reported it had suspended work at the Tavan Tolgoi coal mine, in Mongolia, owing to a disagreement with the client, Erdenes Tavan Tolgoi (ETT).

Macmahon has been operating at the Tavan Tolgoi mine since 2012, in a contract worth an estimated $500-million.

However, the project house said on Wednesday that some $22-million in progress payments were currently overdue. The company’s contract at the Tavan Tolgoi mine was set to expire in 2017.

Macmahon said on Wednesday that ETT had suspended operations at the coal mine as part of a range of disagreements between the two companies.

The two were now involved in discussions to see whether the matters could be resolved by agreement.

Meanwhile, Macmahon has reported revenues of some $1-billion during the full year ended June. The company also reported a net profit of $30.4-million, with its order book currently standing at $2.6-billion.

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