22/12/2021 - 15:57

Financial woes for Pilbara Resource Group

22/12/2021 - 15:57

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Construction and civil contractor Pilbara Resource Group has gone into administration after its major mining partner GWR Group scaled back its operations.

Financial woes for Pilbara Resource Group
GWR Group's C4 iron ore deposit. Photo: GWR Group.

Construction and civil contractor Pilbara Resource Group has gone into administration after its major mining partner GWR Group scaled back its operations.  

Hall Chadwick partners Richard Albarran and Cameron Shaw were appointed as administrators to the West Leederville based group by a resolution of directors on Friday.

Hall Chadwick WA told Business News no staff had been stood down at Pilbara Resource Group as yet.

The accounting firm said it was too early in the process to provide any information on the company’s assets and creditors’ claims.

Small iron ore miner GWR Group signed a term agreement with Pilbara Resource Group in September last year, with a view to develop GWR’s C4 deposit, part of the larger Wiluna West project.

GWR suspended its mine operations at its C4 mine in September this year, as falling iron ore prices and high shipping costs hit the sector.

High Wycombe transport provider Kwik Haul is suing Pilbara Resource Group over an alleged $930,005 unpaid bill and breach of its service agreement.

According to a Supreme Court writ, the legal action launched by Kwik Haul centres on an agreement it held with the Pilbara Resource Group for the supply of haulage services.

But Kwik claims the agreement, signed in July, was breached when the contractor ordered its immediate termination on September 19, 2021, despite the agreement stipulating a 12-week notice period was required.

Kwik also alleged the Pilbara Resource Group engaged in misleading or deceptive conduct under Australian Consumer Law and failed to pay for haulage services provided.

A first meeting of creditors is scheduled for December 31 in East Perth.

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