Macmahon: Olympic Dam Incident Not Material To Current Fiscal Year Revenue

Macmahon Holdings Ltd. (MAH.AU) said Monday that the shaft damage at BHP Billiton Ltd.'s (BHP.AU) Olympic Dam copper and uranium mine is likely to cut its contract revenue from the project by around A$10 million in the current financial year ending June.

However, Macmahon said the reduced workload isn't material to the group's overall earnings.

Macmahon provides mine development works at Olympic Dam mine in south Australia.

BHP said last month that the Clarke Shaft, one of the two haulage systems at Olympic Dam, was damaged, with ore hoisting likely to be at 25% of capacity until full production resumes in the March quarter.

"The temporary reduction in shaft haulage capacity has resulted in a short-term reduction in the scope of Macmahon's underground work," Macmahon said Monday.

"This has necessitated a restructuring and redeployment of some of the workforce, including some workers being reallocated to shaft repair works," Macmahon said.

-By Lyndal McFarland, Dow Jones Newswires; 61-3-9292-2093; [e-mail]