Macmahon Awarded Contract for Mongolian Expansion

This deal is a step forward in Macmahon international expansion, paving the way for the company to potentially develop a long term business in the region. The project involves large-scale open cut mining operations in the Eastern Tsankhi area of the Tavan Tolgoi deposit, in Mongolia’s South Gobi region, 540 km south of Ulaanbaatar. Mining will begin in January 2012, at a rate of 3 million metric tons per year (mtpy) using the client’s existing equipment. Production is expected to ramp up to 6 million mtpy in the second year and will increase from there to 15 million mtpy once the mine and transport infrastructure is established. The joint venture is in discussions with potential financiers for an off-balance sheet funding solution to provide equipment for the ramp up in the contract production rates. Financing is expected to be finalized in the first six months of 2012.