He said the reported financial position “did not paint the full picture” and the Kestrel mine extension contract with Rio Tinto coal in Queensland was in fact performing in line with expectations.
“This style of construction contract always has upfront costs to mobilise and get established onsite and once the work gets underway this cost is clawed back over the duration of the contract,” he said.
“The KME contract will be no different.
“The reported financial loss in the services division was in no way a reflection on the way that Rio Tinto undertakes its business and the half-year results were purely a timing issue.”
Caruso said Mastermyne had been working on Rio Tinto sites for more than 12 years and had always considered Rio Tinto a valuable customer that played an integral part in Mastermyne’s business.
“Mastermyne has a long-standing relationship with Rio Tinto coal and Mastermyne has always valued the emphasis Rio places on safe and fair contracts,” he said.
Mastermyne recently appointed Kevin Lonergan in the role of general manager for its services division.
Lonegran was formerly an operations manager for United Group Resources based in Mackay, Queensland.
