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“The standstill agreement protects the positions of both parties while the negotiations continue,” Macmahon said on Thursday October 9.
In August, operations at Mongolia’s largest coking coal mine Tavan Tolgoi were suspended as a $22 million payment from ETT was delayed.
Macmahon and ETT entered into a three-week standstill agreement on September 19.
The contractor said at the time that its unpaid progress claims, excluding some debt provisions, amounted to about $30 million at the end of August. It also claimed that ETT was obliged to purchase all plant, property and equipment from the company at a book value of some $48 million should its contract be terminated.
Macmahon has been operating in the Eastern Tsankhi area of Tavan Tolgoi since 2012. Its contract with ETT, which involves large-scale open-cut mining operations, is due to expire in 2017.
Australian mining contractor Macmahon said its standstill agreement with Mongolian coal miner Erdenes Tavan Tolgoi (ETT) in relation to overdue payments has been extended for two weeks.