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BHP cancels Downer contract, 400 jobs at risk

BHP cancels Downer contract, 400 jobs at risk

Photo by Bloomberg

11th June 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Mining giant BHP Billiton has cancelled an overburden removal contract worth some A$360-million over the next two years, with project house Downer EDI over its Goonyella Riverside coal mine, in Queensland.

Downer currently employs some 427 staff at the operation.

No reason was given for the contract termination.

BHP has been cutting back on capital expenditure, with the miner withdrawing from a A$5-billion coal export terminal development at Abbot Point in November last year, as well as halting work on its Queensland growth projects, including a 250 km rail corridor from Goonyella.

The Goonyella Riverside mine is one of seven Bowen basin mines jointly owned and operated by BHP Billiton and Mitsubishi.

Under the terms of the overburden removal contract, Downer would be entitled to compensation for early termination.

Edited by Creamer Media Reporter

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