SRG, Mondium row over Rio Tinto mine contract dispute

SRG Global has taken an engineering firm backed by Monadelphous and Lycopodium to court over work on a $400 million Rio Tinto contract.

Subiaco-based SRG has named Mondium as the defendant in a writ lodged in the Supreme Court of Western Australia.

In the writ obtained by Business News, SRG claimed it was owed about $2.3 million as a subcontractor of a head agreement Mondium struck with Rio Tinto in 2020.

Rio Tinto awarded Mondium a contract valued at about $400 million for the design and construction of the Western Turner Syncline Phase 2 mine in the Pilbara.

Mondium engaged WBHO as a subcontractor on the project, in a contract worth about $48 million.

Under the subcontract, WBHO was to deliver bulk earthworks for the new iron ore processing plant, roads between facilities and associated works at the Western Turner mine.

WBHO entered into voluntary administration after the project was completed and was sold to SRG in 2022.

SRG alleged, in the writ, that it was entitled to be paid for WBHO’s additional work on the project, which was delayed.

According to the writ, the contract amount between WBHO and Mondium was recalculated to add $4.7 million.

SRG claimed Mondium has partially paid the outstanding amount but alleged $2.3 million remained unpaid.

In the writ, SRG claimed WBHO was entitled to an extension of time to practically complete its works under the subcontract because the delays were caused by Mondium breaching the contract and restricting access to the site.

SRG alleged Mondium has failed or refused to pay the delay costs, which is estimated at $8 million, according to the writ.

The company further alleged Mondium improperly deducted $6.1 million from its payment to WBHO for alleged late completion of the work.

SRG claimed, in the writ, damages for breach of contract and costs over the proceedings.

A Mondium spokesperson told Business News it was yet to be served with a writ and it was not in a position to comment.