PARTING WAYS: A food services and cleaning company has cut ties with the resources sector, including major mining clients such as Anglo American and BHP.
PARTING WAYS: A food services and cleaning company has cut ties with the resources sector, including major mining clients such as Anglo American and BHP.

Mystery surrounds why company dumped mine contracts

A FOOD services and cleaning company has cut ties with the resources sector, including major mining clients such as Anglo American and BHP.

Spotless holds lucrative contracts to provide cleaning and other services to several Central Queensland mine camps.

For the past six years, it has provided a range of services across five villages and eight Anglo American mines in Queensland.

A company spokeswoman said a decision had been made to exit the sector completely following a strategic review.

She declined to comment further on the reason for the decision.

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"Spotless is working closely with its camp services customers to facilitate an orderly transition to other service providers over the next 12 months and this will minimise the impact on both services and our people," the spokeswoman said.

 

Downer EDI chief executive Grant Fenn.
Downer EDI chief executive Grant Fenn.

She said parent company, Downer, would continue its involvement in the sector.

"Downer remains a leading provider of contract mining services in Australia and Spotless remains a significant provider of facilities maintenance, asset management and hospitality related services to the defence, government, health, education and stadia sectors," the spokeswoman said.

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However, in February, Downer also flagged its intention to pull out of solar, coal and iron ore.

The Australian Financial Review reported its chief executive, Grant Fenn, deemed these projects "too risky".

"Eighteen months ago we decided to get very tough on both terms and conditions and also the types of jobs that we would undertake," Mr Fenn said, adding the company no longer wanted to take on contracts for certain projects because they involved too much financial risk.



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