Brierty's Rio Tinto, Newmont contracts torn up

Two of the largest contracts held by fallen Perth company Brierty have been terminated, as uncertainty hangs over the company’s future after last week's appointment of administrators.

Brierty announced today that it’s $300 million mining contract at Rio Tinto’s Western Turner Syncline project, which was signed in 2014, has been cancelled.

It expressed gratitude for Rio's support in arranging flights for Brierty personnel from site and making its employee assistance program available. 

The parties are working to agree on a mutually favourable handover outcome.

A $30 million contract for civil works at Newmont Mining’s Boddington gold mine, which was awarded in August last year, has also been terminated.

“Parties to the contract have agreed a conclusion and orderly handover of the works,” Brierty said in a statement.

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

Brierty entered voluntary administration last week, after failing to rebuild what it considered to be an adequate pipeline of future work.

The company failed to recover from both the mining downturn and severe cost blowouts on a Main Roads project last year.

KPMG partners were appointed as administrators.