BHP Billiton Limited (ASX:BHP, LON:BLT) has cut mining services currently being undertaken by Macmahon Holdings Limited (ASX:MAH) at one of its Pilbara iron ore mines and will instead manage the mine itself. The world's largest mining company has told Macmahon operations currently being undertaken by the mining services company at its mine called Orebody 18 in the Pilbara region of Western Australia will be taken in-house.
Macmahon says it will continue to operate on site until it has helped BHP to implement the transition to owner-operator which is expected to be finalised by mid this year.
Macmahon has also advised it is in discussions with BHP regarding future work in the region and looks forward to supporting the global miner’s growth plans.
BHP Billiton reported a net profit of $9.9 billion in the first half of the 2014 financial year.
