More than 200 employees have lost their jobs at Roy Hill mine following a commercial dispute between head contractor Samsung C&T and Laing O’Rourke.
The dispute cost Laing O’Rourke their $215 million contract, which was to see them take charge of the construction of structural steel and relevant mechanical, piping and electrical works for the mine, as well as building the ore stockyard facilities which would have supported export operations, comprising car dumpers, interconnection conveyors and transfer stations.
A spokesperson for the company said the contract was terminated as a “mutually acceptable approach” when negotiations with Samsung over “longer-term commercial matters” were not able to be resolved.
According to Yahoo News, some of the work has already been snapped up by other companies – Civmec has signed a $30 million package to deliver train unloading facilities.
The remainder of the work has yet be appointed to another, or other companies.
Roy Hill chief executive Barry Fitzgerald said the failed contract would not set the mine back.
“As head contractor, Samsung is ultimately responsible for delivery of the project within budget and schedule, and we respect their right and ability to make this decision,” Fitzgerald said.
“Construction of the project is progressing well, with the project now more than 74 per complete.”
The $10 billion iron ore mine’s completion is on track for September 2015.