Trading in the shares of Australian mining contractor Downer EDI (ASX: DOW) were halted on Monday pending an announcement about its troubled Waratah train contract with the NSW government.

According to the company, the trading halt is necessary as it expects to make an announcement to the market in connection with the impact to Downer of changed circumstances in relation to the Waratah Train contract:

Changes included a delay to presenting the first train set to RailCorp for practical completion, delays in production of subsequent trains as a result of asbestos in the Cardiff manufacturing facility, and manufacturing production schedule and project costs.

Downer expects that the trading halt will remain in place until the commencement of normal trading on Thursday, 27 January 2011, unless, before that time, it makes an announcement concerning the matter or requests that the halt be lifted.

The company said it will make an announcement to the market before the start of trade on Thursday.

Downer shares last traded at $4.52.