More setbacks for Rinehart’s Roy Hill as rail contract deferred

The contract for construction of a new rail line for Gina Rinehart's Roy Hill mine has been deferred, with Macmahon Holdings citing the move as further evidence of a slowdown in the mining sector.

PerthNow reports Macmahon has confirmed the tender process for the project has been deferred as Roy Hill officials work at finalising funding for the new mine.

Macmahon was previously awarded early contracting involvement for the rail project in a joint venture with BGC Contracting and John Holland.

According to PerthNow Hancock Prospecting is still in negotiations with a number of contractors on the rail project, but is focused on securing final funding for the mine, which is running behind schedule.

Yesterday Macmahon CEO Nick Bowen resigned and the company announced a large downgrade in earnings guidance.

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