Rio Tinto has cancelled its Rocklea Palms Pilbara accommodation expansion project.
The miner originally awarded Diploma the $44 million contract for the FIFO accommodation project in Paraburdoo in July.
However Rio has now advised the contractor that the project will not proceed beyond the building licence documentation phase, and is terminating the entire project on 29 November.
According to Diploma "the project has been deemed 'non-essential' in the current expansion program for Rio Tinto and as a result the project has been put on hold indefinitely".
Despite this Diploma is still required to carry out the work for the submission of the building licence application for the accommodation units, dry mess, and kitchen.
While it has cancelled this project, Rio did confirm that the $49 million contract for the expansion of its Wickham Accommodation project is still going ahead, stating that it "is still very much on foot and is an essential part of Rio Tinto's expansion plans".
It is part of Rio's wider $300 million Wickham expansion.
The Wickham Town Expansion Phase 2 project will create a new Wickham South subdivision and includes 212 new dwellings, 25 residential lots, the installation of 198 new high quality FIFO accommodation units, the construction of a new 1600 metre square town administration and training centre for both the company and community, as well as the new public recreational parks.