Bri­erty to restart work for Rio

Pilbara News - - News - Ben Har­vey

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.

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