Perdaman suing Lanco Infra for A$3.5 bn over coal supply pact default
24 June 2011
Multinational Perdaman Industries is suing Lanco Infratech in Australia seeking a A$3.5 billion (about Rs 16,600 crore) compensation for not complying with a coal supply pact.
Perdaman had entered into a 25-year coal supply pact with Griffin Coal for its upcoming urea plant. Griffin Coal was acquired by diversified group Lanco for A$730 million in March 2011.
Australia-based Perdaman focused currently on urea production says Lanco is not complying with the coal supply agreement, worth billions of dollars.
Under the contract, Griffin is obligated to supply 89 MT of coal to Perdaman's upcoming Collie urea project in Western Australia over a 25-year period.
Perdaman Chemicals and Fertilisers Pty Ltd's chairman and managing director Vikas Rambal told PTI that the company had filed a lawsuit against Lanco Infratech seeking a minimum compensation of about A$3.5 billion in the Supreme Court of Western Australia.
According to Rambal, because of Lanco's conduct under the Australian consumer act Perdaman was facing road blocks with regards to the works of the proposed $3.8 billion urea plant and had also suffered damages.