Glencore gives contractor the boot on New South Wales project
Glencore Xstrata has ended a shaft-sinking project operated by contractor Macmahon at the company's CSA copper mine in New South Wales, Australia, reports Mining Business.
Macmahon is currently waiting for an explanation for the project's red light. Macmahon chief financial officer Theresa Mlikota told Business Spectator on Thursday that she was unable to shed any light on the decision.
The contract, expected to bring in A$6 million this June and over A$80 million in 2014 for Macmahon, involved "the development of Australia's deepest production mine shaft."
The news prompted a Macmahon share price decline of over 8% Wednesday as investors lost confidence in the already struggling mining services provider.
In the second half of 2012, Macmahon reported net losses of $37.6 million.