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Macmahon NZ job finishes early

Macmahon executive chairman Jim Walker. Picture: Bill Hatto/The West Australian.

Macmahon will receive a termination payment after a contract in New Zealand concluded early because of mine wall slip.

The two-year $38 million contract with Newmont Mining at Waihi gold project was scheduled to complete in April next year.

“However, following a slip on the north wall of the Martha open pit, Newmont Waihi Gold has determined that geotechnical investigations will take considerable time to establish when safe production can recommence,” Macmahon said in a statement.

The company will officially wrap up its contract on June 24.

Macmahon executive chairman Jim Walker said the company was now focused on supporting its personnel in New Zealand, including providing counselling and outplacement services.

The company has been engaged at the historic Waihi gold mine on the North Island south east of Auckland since 1998.

Macmahon shares were off 0.2 cents, or 3.85 per cent, to five cents at 10.10am.