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Perdaman chem says Lanco coal deal subject to lawsuit

Perdaman chem says Lanco coal deal subject to lawsuit
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First Published: Wed, Aug 31 2011. 12 33 PM IST
Updated: Wed, Aug 31 2011. 12 33 PM IST
Melbourne: Perdaman Chemicals and Fertilisers said Lanco Infratech’s threat to terminate a coal supply deal was subject to a court decision tied to Perdaman’s ongoing $3.4 billion lawsuit against Lanco.
Lanco said on Tuesday its Griffin coal unit had terminated a coal supply pact with Perdaman for failing to meet a condition to achieve financial closure.
Griffin Coal, bought by Lanco in March for $760 million, was to supply 2.8 million tonnes a year of coal for 25 years from 2014 from a mine in Western Australia to Perdaman’s proposed $3.7 billion coal-to-urea project nearby.
Lanco offered to give Perdaman up to 15 October to achieve financial close and wants a reply by 6 September.
Perdaman said on Wednesday, Lanco’s offer “has no legal standing”, and said it expects its case against Griffin Coal, Lanco Infratech to be heard by April 2012.
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First Published: Wed, Aug 31 2011. 12 33 PM IST