Macmahon Holdings Sees Challenges Ahead in 2014

Sunday, November 17th, 2013
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Macmahon Holdings says 2014 is shaping up as a challenging year for the mining contractor as it battles for work in the resources industry.

Still, the company’s tender pipeline sits at around $2.5 billion and it’s hopeful of securing work with major mining companies such as BHP Billiton, Vale, Newmont, Barrick, Rio Tinto, Peabody and Adani.

“We are in discussions with all of these companies about opportunities that are on the horizon,” chief executive Ross Carroll told the company’s annual general meeting.

Macmahon is also tendering overseas with hopes of securing work on projects by Lafarge, Anglo Gold and Newmont.

“These opportunities will help us to maintain our order book and position the business for future growth,” Mr Carroll said.

But, he conceded, there was a long way to go as the company transforms itself into a leaner, stronger and more focused organisation.  Macmahon recently recorded a net loss of $73.1 million from its construction business which it sold to Leighton.

During the year Macmahon inked a five-year $1.8 billion contract with Fortescue Metals Group at Christmas Creek and it is in discussions with ERA about the next phase of a ventilation shaft at the Ranger mine in the Northern Territory.

By Kim Christian
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