Almost a month ago, Macmahon said operations were suspended at the surface coal mine due to disagreements with its owner, Erdenes Tavan Tolgoi.
At that time, Machamon said it was owed $22 million by Erdene.
That had grown to $30 million by the end of August, Macmahon said on Thursday.
The contractor announced that a three-week standstill agreement had been reached with Erdene.
Macmahon said this deal, ending on October 9, protects the “positions of both parties while the discussions continue”.
“Under the terms of the contract, ETT is also obliged to purchase at book value, all plant, property and equipment from the contractor should the contract be terminated”, the contractor said.
“The value of this is about $48 million. Macmahon’s Mongolian subsidiary is vigorously pursuing its contractual entitlements.”
Macmahon’ five-year agreement to operate Tavan Tolgoi expires in 2017.
According to Bloomberg last month, the mine’s pit contains 1.08 billion tonnes of reserves (78% coking coal) with most of it sold to Aluminum Corporation of China.
