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