Macmahon extends late payment talks with ETT

Macmahon Holdings has extended its standstill agreement with Mongolian company Erdenes Tavan Tolgoi to allow for more time to negotiate an outstanding $US30 million in payments it’s owed.

Macmahon has been in negotiations with ETT since late August, when the company first announced to the ASX that payments were overdue for mining services it provided at ETT’s Tavan Tolgoi coal project in Mongolia.

The Perth-based mining contractor said under the terms of the contract, which it has been operating under at Tavan Tolgoi since 2012, ETT was also obliged to purchase at book value, all plant, property and equipment from it if the contract is terminated.

The contract has an expiry date in 2017.

Macmahon said the extension agreement would allow the parties further time to negotiate the matters between them and progress alternative solutions, but it was vigorously pursuing all contractual entitlements.

Macmahon’s share price closed unchanged at 10.5 cents per share.