Downer EDI to Recruit Workers from Macmahon for Christmas Creek Mine

The Sydney Morning Herald reported that Downer EDI (ASX:DOW) plans to recruit 400 workers from its rival Macmahon Holdings (ASX:MAH) when it begins an expanded mining services contract in April at Christmas Creek iron ore mine, which is owned by Fortescue Metals Group (ASX:FMG).

As quoted in the news:

Downer currently has some 600 workers providing mining services at one of Fortescue’s two Christmas Creek iron ore-processing facilities in the Pilbara, while Macmahon has had around 700 workers at the second facility.

To cut costs, Fortescue has combined the two contracts, announcing in February that Downer had been appointed to provide drilling, blasting and haulage services at both facilities from April in a new $720 million contract.

Macmahon’s contract with Fortescue, which had generated $260 million in annual revenues for the Perth-based company, will end on April 20, forcing the company to cut costs and consolidate offices.

Click here to read the full Sydney Morning Herald report.