Collapsed contractor Brierty has been stripped of its major mining contracts, including a $300 million job it was awarded by Rio Tinto in the Pilbara more than three years ago.
The Perth-based company last week appointed administrators after having difficulty generating profits and due to market uncertainty.
Its financial issues have led to mining contracts with Rio and Newmont Mining in Western Australia being cancelled.
Brierty was awarded the $300 million contract for work at Rio Tinto’s Western Turner Syncline Stage 2 project in April 2014.
The work, which was supposed to last four-and-a-half years, involved both mining and civil works.
Brierty’s agreement at the iron ore site has been in doubt for several months now.
Rio suspended the contract in June to address several concerns, only to allow Brierty to resume work a month later. The restart was, however, short-lived.
Brierty said the contract with Rio “has been terminated and the parties are working together to agree a mutually suitable outcome in relation to the hand-over of the works.”
“Parties to the contract have agreed a conclusion and orderly hand-over of the works,” Brierty, commenting on the Newmont contract, said.
Brierty, which appointed KPMG as its administrators, has experienced difficulties generating civil works profits in recent months, it said last week.
The company also reported that it had been unable to secure enough new work in an uncertain marketplace.
“The company’s directors and management remain committed to working with the administrators to achieve the best possible outcome for all stakeholders,” the company said today.