After months of negotiations a mining services company has finally secured a lifesaving pay rise for a precious metal project in Western Australia’s Midwest region.
Macmahon Holdings has renegotiated an agreement with proponent Newcrest Mining for its Telfer Gold Project, 400km southeast of Port Hedland.
Before June 30 Macmahon will be paid an increased rate, ensuring the contractor no longer makes a loss from carrying out operational work at the mine.
Macmahon has been trying to renegotiate its contract for at least five months because the contractor initially discovered it was losing money while carrying out the mine plan and contract program at Telfer.
Earlier talks held back in August failed to reach a resolution but the latest agreement means Macmahon now expects the Telfer contract to be cash flow positive over its remaining term.
“The resolution of this dispute means we can now focus all of our attention on maximising the performance of our existing business, and capitalising on growth opportunities,” Macmahon CEO and managing director Michael Finnegan said in a public statement.