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Macmahon suspend Mongolian work over payment

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Macmahon's Mongolian subsidiary has suspended work as its payment runs overdue.

The contractor is in disagreement with Erdenes Tavan Tolgoi over work at the Tavan Tolgoi coal mine, which Macmahon says is now seriously in arrears.

"Approximately US$ 22 million in progress payments are currently overdue," Macmahon said in a company statement.

"Macmahon advises that operations at Tavan Tolgoi have now been suspended by ETT, as part of a range disagreements between the parties," it added.

It was awarded the contract, valued at more than US$ 500 million,  in 2011 as part of a joint venture with German firm Operta GmBH.

The contractor has been operating at Tavan Tolgoi since 2012, with the agreement scheduled to expire in 2017.

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