Mining Services CEO Quits

Monday, January 26th, 2015
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Mining Services CEO Quits

It has been a tumultuous period for Macmahon and the mining services sector, with work drying up as the mining boom has ended and miners take work in-house and cut costs.

No reason was given for Mr Carroll’s departure, which was immediately effective.

Late last year, Perth-based Macmahon downgraded revenue expectations for 2014/15 by $150 million – from $750 million to $1 billion to $750-$850 million.

That was due to a dispute in Mongolia in which Macmahon says it is owed $US30 million for work at a coal project by state-owned company Erdenese Tavan Tolgoi.

That dispute could cost far more, with the total value of Macmahon’s contract – with a joint venture partner – more than $US500 million ($A617.97 million).

The company is also facing a possible class action from investors dating back to 2012, who said it did not disclose details about losses on a rail project for Rio Tinto in the Pilbara.

The company’s chairman Jim Walker will act as executive chairman until a replacement for Mr Carroll is found.

Macmahon said there would be no change to Mr Walker’s remuneration and it would not replace departing director Barry Cusack – who also resigned on Thursday – to save costs.

“The board is committed to implementing cost saving measures across the business as the company navigates the current suppressed market for mining services,” Mr Walker said.

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