Macmahon Holdings Limited
(ASX:MAH) has been accused of a serious safety breach by Glencore Xstrata, which terminated the contractor from a copper mine expansion project.
Media reports say Glencore is using the breach, which reportedly occurred six weeks ago, as grounds for ending Machmahon’s contract.
Macmahon announced last week its contract at the mine had been cancelled. It estimated the contract was worth about $6 million in revenue this year and a further $80 million next year.
At the time, Macmahon said it was seeking clarification on the reasons for and consequences of the termination and will advise of the impact on market guidance once details are known.
A Glencore spokeswoman told media there were a number of factors involved in the suspension of work at the mine.
Macmahon posted a net loss of $37.6 million in the first half of the current financial year.
