Newmont cancels Macmahon mining services contract

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Martha open pit Image credit: http://www.waihigold.co.nz/mining/martha-mine/

Gold miner Newmont cancelled a two-year mining services contract with Macmahon at the Martha mine in New Zealand due to safety concerns.

Martha open pit
Image credit: www.waihigold.co.nz

The contract, valued at $38 million, was set to be completed in April 2016, but it will be terminated before the end of June 2015.

Newmont Waihi Gold, the project’s operator, said that it had reached the decision to cancel the contract after a slip on the north wall of the Martha open pit mine resulted in a halt in operations.

Activities were put on hold and job losses are imminent since Newmont Waihi Gold announced that it had tried to work a way to safely have workers in the mine, but that process could take up to a year.

Adertisement

Macmahon has operated the mine for 17 years.

“In all respects, Macmahon has been a respected and valued business partner,” said Newmont Waihi Gold’s General Manager, Glen Grindlay, in announcing the need to conclude the contract.

“We have been operating on site at Waihi since 1998 and over that time have developed a strong and loyal workforce. We will be supporting these employees during this change, including providing counselling and outplacement services,” said Macmahon Executive Chairman, Jim Walker.

Work at the mine will be suspended until it is certain that safe production can be restarted.

Newmont Waihi Gold operates both the Martha Mine open pit and the Favona and Trio underground mines in Waihi.