FMG cutbacks to lead to significant job losses

as posted here

A mining services company says a decision by Fortescue Metals Group (FMG) to terminate its contract at the Cloudbreak iron ore mine in the Pilbara will result in signficant job losses.

Brierty Limited, which is based in the Perth suburb of Maddington, says it was given the termination notice by FMG late yesterday, even though the earth works contract was not due to expire until August.

It estimates the termination of the contract will cost the company $12 million in lost revenue, but it is still budgeting for a profitable second half of the financial year.

FMG Chief Executive Andrew Forrest says the company's decision to terminate the contract was a business decision and did not reflect the quality of the services.

"They're a fantastic contractor and we had trucks and equipment which could do their job so we acted in the interests of Fortescue," he said.
as posted here