Macmahon said that around $22m in progress payments are currently overdue for the work it has completed at the mine.
Macmahon Holdings said in a statement: "Macmahon advises that operations at Tavan Tolgoi have now been suspended by ETT, as part of a range of disagreements between the parties.
"The parties are engaging in discussions to see whether the matters can be resolved by agreement."
In October 2011, the company along with Germany’s Operta secured a $500m contract for coal mining operations at the Tavan Tolgoi mine.
Since 2012, Macmahon has been operating at Tavan Tolgoi and its contract is scheduled to end in 2017.
Located in the Eastern Tsankhi area of the Tavan Tolgoi deposit, the mine produces both thermal and coking coal and is expected to produce 15 million tons a year after all mine and transport infrastructure is established.
