Fortescue Awards Christmas Creek Contract to Downer EDI

Australian Mining reported that Fortescue Metals Group Ltd. (ASX:FMG) has wound up the service contract at Christmas Creek for Macmahon Holdings Ltd. and awarded the remaining work to Downer EDI Ltd. (ASX:EDI).

As quoted in the market news:

After already dropping 40 workers from the Christmas Creek operation last week, Macmahon was informed by FMG on Friday that their contract, worth $260 million in revenue, would be wound up by April 20.

Downer EDIs contract has been expanded to include Christmas Creek 1 and 2, an agreement which will run to September 2016.

Downer EDI has said the contract is worth $720 million however FMG have stated it is worth approximately $650 million.

Downer EDI Chief Executive Grant Fenn stated:

This represents another step in Fortescue’s concerted drive to increase our global competitiveness.

Click here for the full Australian Mining report