Newmont Waihi Gold has terminated a contract with Macmahon and cut 50 jobs following a land slip at one of its mines.
The slip occurred on the north wall of Newmont’s Martha open pit mine in April, forcing the company to halt mining activities.
Newmont had been looking at ways to continue mining at the site, but say investigations could take up to a year.
Macmahon will cease its mining contract at the mine on June 24, and will receive an early termination payment.
The two-year contract was valued at $38 million, and was scheduled to be completed in April 2016.
Macmahon Executive Chairman, Jim Walker, said the Company was now focused on its personnel in New Zealand, and ensuring contract completion meets the expectations of Newmont Waihi Gold.
“We have been operating on site at Waihi since 1998 and over that time have developed a strong and loyal workforce. We will be supporting these employees during this change, including providing counselling and outplacement services,” he said.