Machamon and its subsidiaries have entered a three week work standstill agreement following suspension of operations.
Last month Macmahon's Mongolian subsidiary announced a work suspension following overdue payments running to more than US$20 million at ETT's Tavan Tolgoi coal mine in Mongolia as the time.
The contractor is in discussions regarding payment delays, and has entered the standstill as the "agreement protects the positions of both parties whilst the discussions continue".
At the time of writing the contractor's unpaid progress claims totalled around US$30 million, with potential termination of the contract ahead.
Under the terms of the original contract, which was valued at approximately US$500 million, the miner ETT is obliged to purchase (at book value) all plant, property, and equipment from Macmahon should the contract be terminated.
All of this equipment has been valued at around US$48 million.
According to Macmahon its "Mongolian subsidiary is vigorously pursuing its contractual entitlements".
Read more at http://www.ferret.com.au/articles/news/macmahon-enters-three-week-work-stoppage-in-mongolia-n2517624#vEd6H7YzofBZU36G.99
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