Australia's Rivet Mining Services enters receivership

FTI Consulting

22/03/2023 07:23

MELBOURNE, March 22 (Reuters) - Rivet Mining Services
(RMS), a provider of trucking and related services to iron ore
and gold miners in Western Australia, has entered receivership
following labour shortages and cost pressures, adviser FTI
Consulting said on Wednesday.
    The receivership comes as the state's mining industry faces
pressure from cost overruns due to supply chain disruptions
caused by COVID-19, higher power costs, and multiple mine
expansions that have fuelled a competitive labour market.
    "Based on a preliminary assessment, it appears RMS has been
deeply affected by a number of adverse economic factors
including extreme weather events, project delays, labour
shortages, and cost pressures," FTI said in a statement.
    "RMS will continue to trade on a business-as-usual basis
while the Receivers conduct an independent assessment of its
financial position and seek to sell the business as a going
concern," it said.
    While RMS is part of the wider Rivet Group, a provider of
specialised transport and logistics to industries including
aviation, the appointment of receivers relates only to the
mining services business, FTI added.
    "All other entities of the Rivet Group will continue to
trade in their usual manner and have the ongoing support of
their senior secured lender to the group to do so to ensure that
customers, suppliers and employees are not adversely impacted,"
it said.
    RMS provides truck haulage across highway routes from mine
to port facilities or processing infrastructure, as well as road
construction and maintenance.

 (Reporting by Melanie Burton; Editing by Varun H K)
 ((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals;
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