Mining contract progression for Macmahon Holdings

Company News

by Rachael Jones

Macmahon Holdings (ASX:MAH) has commenced Phase 2 of the Batu Hijau mining contact in Indonesia.

Macmahon has been operating under a cost-plus arrangement during Phase 1 since the start of the contract last year.

The progression to Phase 2 marks the commencement of the gain share / pain share mechanism within the Mining Contract, whereby any cost savings or overruns will be shared between the parties.

As a result, the parties have agreed to adjust part of Macmahon’s remuneration structure from a percentage based margin, to an agreed management fee of comparable value, reset annually.

Macmahon Holdings (ASX:MAH) closed flat at 21c.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.