Gina whatever hits another hurdle

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From the West Australian:

Fresh cracks are appearing in Roy Hill’s ambitious bid to start shipping iron ore from Port Hedland by September, after major construction contracts at its port operations were torn up yesterday.

The jobs of more than 300 workers are in limbo after Samsung C&T, head contractor on the $10 billion mine, rail and port project, terminated the port contracts of global construction giant Laing O’Rourke.

Laing O’Rourke had a $215 million contract for structural steel and associated mechanical, piping and electrical work at the port, including ore train unloading facilities and conveyor belts.

The company stood down its workers in Port Hedland and is believed to be in the process of advising its remaining staff the contract has been scrapped.

It is understood the contract was torn up after the two sides failed to resolve a running dispute over progress and which company would bear responsibility for delays.

Good news for everyone else if the great glut-builder is delayed.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.