News

Millions left owing by contractor

S&N has gone into administration.
S&N has gone into administration. Peter Holt

A WEST Australian-based company working on the Kestrel Mine Extension has gone in to administration after severely under-costing the project, leaving millions owed to Central Queensland subcontractors and trade businesses.

S&N Civil Constructions collapsed on April 11 but the warning bells were ringing long before that and KME owner Rio Tinto Coal refused to listen, according to one former Blackwater-based subcontractor.

The subbie claimed he had not been paid for four of the seven months he worked for S&N Civil on purchase orders and was out of pocket $280,000.

Another subcontractor was owed $2.6 million.

"The whole time they knew S&N Civil was going down, having money troubles, and Kestrel always said no matter what happens we will look after the subcontractors," the subbie said.

"The only reason I kept working was Rio kept saying 'We will pay you out, we will look after you'. Basically, it hasn't happened.

"I'm originally from Blackwater and I have been in the mines all my life. When I got the (nine-month) contract for KME I thought I'd come back to the area.

"I've been paying off my two machines, I've got a little one in school, got a wife, I'm looking after my parents and renting a house in Emerald for $600 a week and in another couple of weeks we will have to move out.

"There's Shepton Quarry and lots of businesses in Emerald also owed money by S&N Civil as well."

Rio Tinto is on the list of S&N creditors, claiming $21 million.

The KME has already blown out to more than $2 billion, double its original estimate, but remains scheduled for completion in 2013.

A Rio Tinto spokesman said the company was working to minimise any disruption to the KME from S&N Civil's demise.

"This is a difficult situation for all involved and it is regrettable that subcontractors have been impacted in this way," the spokesman said.

"However, it is important to recognise Rio Tinto has made significant and all payments required to S&N for the work carried out.

"S&N is in turn responsible for paying its employees and subcontractors."

Ferrier and Hodgson partners Martin Jones and Darren Weaver were appointed as joint voluntary administrators to S&N Civil on April 11.

The administrators described the KME as the "unprofitable contract" that could have tipped the company's financial fortunes.

The subcontractor said he believed S&N had about 140 workers who had been paid, but were still chasing up unpaid superannuation.

"They're still owed holidays too. It's around $10,000 each person plus super," he said.

"Rio has annoyed me the most... I moved to Emerald for this job and they knew what was going down.

"They had numerous complaints and nothing was done.

"I will lose my machines, everything I have worked for.

"I have until mid-June to make the payments. If I don't get any money, I have nowhere to go."


Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Address debt, says financial counsellor

ACT NOW: Don't let debt accumulate, a financial counsellor advises.

Don't let the financial stress mount, says financial counsellor.

Colourful array of stunning art

BLOOMING BEAUTIFUL: A winning entry from last year's Blackwater art exhibition.

If you love art then the 41st Annual Art Competition is for you.

Growing up with a love for local show

BIG OPPORTUNITY: Cheneya Freese is the 2017 Miss Alpha Showgirl.

Cheneya Freese has been named Miss Alpha Showgirl for 2017

Local Partners

Young man's body found in burnt CQ home

MYSTERY surrounds death of a young man found near melted appliances in a burnt-out Emerald unit this morning.

What to expect at Birds of Tokyo's Ipswich gig

The band will perform at the Racehorse Hotel on Friday.

BAND member Glen Sarangapany talks music, pub grub and doing shoeys

What public holidays are left in 2017

Ipswich residents will get the day off tomorrow for the show.

IPSWICH residents will get tomorrow off for the show

Caitlyn comes home to launch debut album

Gympie's Caitlyn Shadbolt will launch here debut album Songs On My Sleeve at an exclusive all-ages concert in Gympie on Friday, May 26.

Win tickets to Caitlyn's album launch

Bay to star in Hollywood shark thriller ‘Cage Dive’

A great white thriller that had scenes filmed on the Fraser Coast has been picked up by a major US movie studio.

Celebrity sex tapes: Where does all that money go?

Basically, did Paris and Kim earn fortunes from their videos?

Cher, 71, and Celine Dion wow world at Billboard Awards

“I’m 71 yesterday and I can do a five-minute plank, OK.”

Judah's return to The Voice stage is a knockout

Judah Kelly performs during his knockout round on The Voice.

QUEENSLAND singer nails Adele hit.

Wentworth star Daniielle Alexis: "I was born a boy"

Wentworth star Daniielle Alexis has revealed she was born a boy

Dwayne Johnson, Tom Hanks announce White House bid on SNL

Dwayne Johnson is “officially” running for president in 2020

What to expect at Birds of Tokyo's Ipswich gig

The band will perform at the Racehorse Hotel on Friday.

BAND member Glen Sarangapany talks music, pub grub and doing shoeys

One of Maryborough's most historic homes is still for sale

FULL OF HISTORY: Trisha Moulds is owner of the historic Tinana state known as Rosehill. The beautiful home is currently for sale.

It has been the scene of both joy and tragedies over the years.

The face of the Sunshine Coast's overpriced rental crisis

Alyx Wilson had to rent a $385 unit in Currimundi because the market was too competitive for cheaper rental housing. She is now renting a room from friends who own a house in Currimundi, and says its much more affordable.

Young people feel the strain in competitive, expensive rental market

WATCH: Take a tour of a tradie's dream home

5a Bruce Hiskens Court, Norman Gardens, going for $720,000. INSET: Lea Taylor.

Huge block with potential for anything

Deputy Premier makes massive call on controversial sand mine

Aerial view of the proposed Forest Glen sand mine.

BREAKING: State Government makes huge call on Coast sand mine plans

Ready to SELL your property?

Post Your Ad Here!