Operations at Mongolia’s Tavan Tolgoi Mine Halted, Macmahon Says

Operations at Mongolia’s Tavan Tolgoi coal mine have been suspended amid a disagreement between state-owned mine operator Erdenes Tavan Tolgoi JSC and contractor Macmahon Holdings Ltd. (MAH)
About $22 million in progress payments for work already completed is overdue and its unit has been in talks with Erdenes Tavan Tolgoi, Mongolia’s largest state-owned coal company, regarding payment, Perth-based Macmahon said today in a statement.
“Macmahon advises that operations at Tavan Tolgoi have now been suspended by ETT, as part of a range of disagreements between the parties,” the Australian company said. “The parties are engaging in discussions to see whether the matters can be resolved by agreement.”
The disagreement comes as Mongolia’s government is locked in a prolonged dispute with Rio Tinto Group over cost overruns and taxes at the Oyu Tolgoi copper and gold mine that’s lead to a plunge in foreign investment.
Enkhbat Badarch, chief financial officer at Erdenes Tavan Tolgoi and Batsuuri Yaichil, its chief executive officer, weren’t immediately available when contacted by phone.
Macmahon has been operating at Tavan Tolgoi since 2012 and its contract is due to expire in 2017. It won a bid in August 2011 to work as a contract miner at the east pit at Tavan Tolgoi, Mongolia’s largest coal deposit. The pit contains 1.08 billion metric tons of reserves and 78 percent is coking coal, an important steelmaking ingredient.
Most of the coal from the mine is delivered to the Aluminum Corp. of China Ltd.
To contact the reporter on this story: Michael Kohn in Ulaanbaatar at mkohn5@bloomberg.net
To contact the editors responsible for this story: Jason Rogers at jrogers73@bloomberg.netMadelene Pearson, Rebecca Keenan
Share:

0 comments:

Post a Comment

Facebook page

Powered by Blogger.

Categories

Advertising in Mongolia An Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia agriculture Mongolia analysis Mongolia and Australia Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and India Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia civic society Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive

Followers

Live Traffic