The iron ore price crunch claimed its first WA victim on Friday, with about 60 jobs on the line after creditors called in receivers to Pluton Resources.
It is understood mining contractor Watpac suspended operations on the weekend at Pluton's high-grade Cockatoo Island iron ore mine after China's Rizhao Port Group Logistics appointed FTI Consulting as receivers. Watpac is owed about $19 million for Cockatoo Island work, according to Pluton disclosures.
Watpac would not comment yesterday, but is understood to have temporarily stood down up to 60 workers as it seeks clarity on whether work can continue at the mine.
It is believed Pluton was seeking advice over the weekend on the validity of the appointment, and could seek an injunction preventing seizure of the company by receivers on Monday.
Two weeks ago, Pluton was celebrating the close of a $48 million capital raising, including a cash injection and debt restructure.
Last week its estranged Chinese joint venture partner at Cockatoo Island, Wise Energy Group, moved to oust Pluton as manager of the project.
Pluton advised the market of the crisis late on Thursday, in response to _WestBusiness _questions about the termination notice, saying it did not believe Wise's move was legally enforceable. Pluton has been brawling with Wise over payment of costs at the project. Pluton believes Wise owes it about $20 million in joint project costs.
At the time Pluton was also facing legal threats from Rizhao, a major customer and creditor, over allegations it diverted shipments due for delivery to a Rizhao nominee to unknown buyers.
Last Tuesday, lawyers acting for Rizhao wrote to Pluton and Wise threatening legal action if an explanation for the missing shipment was not supplied.
On Friday, FTI Consulting's Ian Francis and Michael Ryan were appointed receivers, according to ASIC documents.
Sources say the move prompted a stand-off at Pluton's office, after senior management queried the validity of the appointment and called police, seeking to have FTI staff removed from the premises.
A police spokeswoman yesterday confirmed officers attended a West Perth office on Friday afternoon.
She said no arrests were made and no offences committed.
Pluton has not released its 2013 annual report and financial accounts. Pro-forma figures released for the recent capital raising showed that at March 31, it had $57.8 million in short-term liabilities.
Pluton is the first WA victim of the 40 per cent slump in iron ore prices this year.
PLV Price at posting:
3.4¢ Sentiment: None Disclosure: Not Held
