Brierty’s major mining contracts with Rio Tinto and Newmont get the chop
Link copied to
The fall from grace of collapsed mining services provider Brierty continues with the termination of contracts with mining goliaths Rio Tinto and Newmont Mining after administrators were appointed last week.
Berity’s (ASX:BYL) administrator KPMG advised that a $300 million contract with Rio Tinto signed in April 2014 had been terminated.
The contract, which involved mining and civil work, still had another 18 months to run and would have secured revenue for Brierty through to 2019.
“Parties are working together to agree a mutually suitable outcome in relation to the hand-over of the works,” KPMG restructuring services partner Matthew Woods said.
Meanwhile, a $30 million contract signed in August last year with Newmont Mining to perform civil works at its massive Boddington gold mine in Western Australia, has also been given the heave ho.
The work specifically related to earthwork services for residue disposal area.
“The company’s directors and management remain committed to working with the administrators to achieve the best possible outcome for all stakeholder,” Mr Woods said.
KPMG also noted that Brierty’s wholly-owned subsidiary Bellamack, continued to trade and hadn’t had administrators appointed.
Brierty lost $2.9 million last year after revenues collapsed by 40 per cent to $126.4 million.