PERTH (miningweekly.com) – Multinational major Glencore Xstrata has cancelled a shaft sinking contract at the CSA copper mine, in New South Wales, with ASX-listed project house Macmahon.
Macmahon said on Wednesday that the shaft sinking project had been expected to deliver a further A$6-million in revenue until June this year, and a further A$80-million in revenue for the full 2014.
The project house told shareholders that it was seeking clarification on the reasons for the termination, and would advise shareholders on the impact to market guidance.
Macmahon was appointed to the project in October 2011 as the main contractor for a hoisting shaft extension and upgrade at the CSA mine. The project was aimed at allowing lower-cost access to deeper resources in the mine, and would have increased yearly production by around 50%, to 270 000 t/y of copper concentrate.
The construction project was supposed to have lasted two years, with completion forecast for 2013.
The shaft extension formed part of a A$150-million expansion of the CSA mine.