Samsung C&T has terminated the port contracts of UK’s construction company Laing O’Rourke at the $10bn Roy Hill iron ore mine in Australia.
The $215m contract was terminated as the two parties were unable to resolve a long-term dispute over the mine’s progress.
Samsung C&T is the engineering, procurement and construction (EPC) contractor for Roy Hill, which is 70%-owned by Hancock Prospecting and stretches 34km-long and 17km-wide across Western Australia’s Pilbara region.
In March 2014, Samsung C&T awarded a contract to Laing for the construction of structural steel and associated mechanical, piping, electrical and instrumentation works at Roy Hill mine.
The contract also included construction of the ore stockyard facilities in a bid to support the intermodal and export operations that consist of car dumpers, interconnection conveyors and transfer stations.
The contract termination is said to affect the jobs of more than 300 workers.
In January, stalled crane activity at the processing facility returned to around 80% capacity.
Samsung is in the process of negotiating with NRW Holdings, another subcontractor at Roy Hill.
Image: Roy Hill iron ore mine in Australia. Photo: courtesy of Roy Hill.