Australia's Rivet Mining Services enters receivership

MELBOURNE (Reuters) - Rivet Mining Services (RMS), a provider of trucking and related services to iron ore and gold miners in Western Australia, has entered receivership following labour shortages and cost pressures, adviser FTI Consulting said on Wednesday.

The receivership comes as the state’s mining industry faces pressure from cost overruns due to supply chain disruptions caused by COVID-19, higher power costs, and multiple mine expansions that have fuelled a competitive labour market.

“Based on a preliminary assessment, it appears RMS has been deeply affected by a number of adverse economic factors including extreme weather events, project delays, labour shortages, and cost pressures,” FTI said in a statement.

“RMS will continue to trade on a business-as-usual basis while the Receivers conduct an independent assessment of its financial position and seek to sell the business as a going concern,” it said.

While RMS is part of the wider Rivet Group, a provider of specialised transport and logistics to industries including aviation, the appointment of receivers relates only to the mining services business, FTI added.

“All other entities of the Rivet Group will continue to trade in their usual manner and have the ongoing support of their senior secured lender to the group to do so to ensure that customers, suppliers and employees are not adversely impacted,” it said.

RMS provides truck haulage across highway routes from mine to port facilities or processing infrastructure, as well as road construction and maintenance.

Reporting by Melanie Burton; Editing by Varun H K