Miners Fly Home After Contract Cancelled in WA

In Exploration, Infrastructure & Operations, Latest News

Rio Tinto has terminated failed civil and mining contractor Brierty’s biggest job at a Pilbara iron ore project in Western Australia.

Brierty’s administrators said Rio had arranged flights home for the contractor’s employees and made an assistance program available to them.

“The parties are working together to agree a mutually suitable outcome in relation to the handover of the works,” the administrators from KPMG said.

About 65 Brierty people were employed on Western Turner Syncline stage 2 project.

The mining and ore haulage contract had another 18 months to run and was worth about $100 million.

Rio Tinto said it would work with the administrators to possibly offer jobs to some affected Brierty employees and contractors.

“This matter will take some time to work through and the safety of our workforce is our highest priority,” a spokesman said.

The administrators said a Brierty earthworks contract at Newmont Mining’s Boddington gold mine had also been cancelled. It had 18 months to run and expected revenue of about $18 million.

“Parties to the contract have agreed a conclusion and orderly hand-over of the works,” they said.

“The company’s directors and management remain committed to working with the administrators to achieve the best possible outcome for all stakeholders.”

The insolvency specialists took control of Brierty last week at the request of the board. The company owes creditors about $40 million.

The Dalton Gooding-chaired board said work dried up because of doubts about Brierty’s financial position in the wake of a road project blowout and existing civil contracts were struggling for profitability.

Land sales from its Bellamack housing development in Darwin had also slumped.

The Bellamack subsidiary is not in administration.

Story source: The West

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