Mining services provider Macmahon Holdings Ltd's has been dumped...

Mining services provider Macmahon Holdings Ltd's has been dumped by Cobar Management from its expansion project at the underground CSA copper mine in central western New South Wales and is "seeking clarification" on the decision.

Macmahon said Cobar terminated its shaft sinking project at CSA late yesterday and it was "currently seeking clarification on the reasons for and consequences of the termination and will advise of the impact on market guidance once details are known".
The CSA project was expected to contribute about $6 million of revenue to Macmahon in June 2013, and $80 million of revenue next financial year.

In February, Macmahon Holdings Ltd said it expected to post a full-year loss of between $10 million and $20 million as the sale of its construction business to Leighton Holdings takes effect, after slumping to a massive interim loss.

In the six months to December 31, Macmahon posted a net loss of $37.6 million, a long way from the $23.2 million profit recorded in the same period last year.

The shaft extension project would have seen the development of Australia's deepest production mine shaft.

The existing shaft was being extended to 1550 metres from the drive drum to the base of the shaft.

Macmahon previously said "was assisting CSA Mine to introduce innovative methodology and technologies to help address challenging ground conditions at the site, with new technology being developed specifically for this project".