Operations at the Calabar project in Nigeria had now come to an end. Image: Macmahon.
By Elizabeth Fabri
MACMAHON has ended its Calabar contract in Nigeria two years ahead of schedule following a kidnapping incident in June involving seven staff.
The contract, set to finish in 2018, was terminated early due to security concerns and ongoing low mining volumes linked to the client’s production plant.
On 28 October operations at the project ceased, and demobilisation was now in progress.
“We’ve been working at Calabar since January 2012 and our contract has been to undertake quarrying operations at UniCem’s 2.5Mtpa cement manufacturing plant in Mfamosing, about 40km north east of Calabar in Cross River State, Nigeria,” a company spokesperson said.
“During this time the company has faced a number of challenges associated with difficult operating conditions experienced in country.
“Recently, the Macmahon board made the decision to terminate our contract at Calabar in Nigeria.”
“The kidnapping incident in June 2016 highlighted the deteriorating security environment in the local area, which the board has now determined to be unacceptable.”
In April this year, Macmahon also terminated a contract with LafargeHolcim at the Ewekoro mine in Nigeria, which now left the company with no footprint in the region.
“At this stage the company is not tendering any new opportunities in Nigeria,” the spokesperson said.
“We are still actively tendering in other areas in West Africa.”
Just days after the announcement, Macmahon chief executive Sybrandt van Dyk resigned from the role and was replaced by the company’s general manager of surface mining, Michael Finnegan.
“During his time with Macmahon, Sybrandt has been instrumental in steering the company through a major transformation and we wish him all the best in his future endeavours,” chairman Jim Walker said.
“We look forward to working with Mick in his new role as he applies his considerable experience and knowledge across the company.”