Brierty to restart work for Rio
Under-siege contractor Brierty has slipped the hangman, announcing last week it had been cleared to restart mining on a Rio Tinto site — a move that allows the Dalton Goodingchaired company to get access a crucial debt facility.
Brierty said it would restart operations at Western Turner Syncline Stage 2 this week.
The work for Rio is worth $100 million, has 18 months to run and employs 65 people.
The contract was suspended over safety concerns, which triggered a warning from Brierty’s banker, Bankwest, that a critical $6 million debt facility would be revoked unless the contract work restarted.
Brierty said last week it could access the $6 million and restructure its debt by establishing a new, longterm debt facility that stops the company relying so heavily on its overdraft.
The company’s debt comprises a $10 million overdraft facility (down from $25 million), $10 million in bank guarantees, the new $6 million facility and long-term debt worth $15 million.