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Macarthur subsidiaries face A$1,2b contract breach claim
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28th October 2010
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PERTH (miningweekly.com) – ASX-listed Macarthur Coal on Thursday advised shareholders that two of its subsidiaries, Monto Coal and Monto Coal 2, have been served with a claim for damages of A$1,2-billion for breach of contract.

Macarthur noted that claim related to Queensland court proceedings, which started in 2007, by the three joint (JV) venture (JV) partners in the Monto JV, Sanrus, Edge Developments and H&J Enterprises.

The amended claim for damages related to breach of contract, as well as interest and costs. The original claim was made for damages of no less than A$68,97-million.

Macarthur said that its two subsidiaries continue to dispute the claims. “The company continues to support Monto Coal and Monto Coal 2 to strongly defend themselves against the claims of the plaintiff JV parties on the basis that the allegations are unfounded,” Macarthur said.

Monto Coal is the manager of the Monto Coal project, pursuant to a management agreement. Monto Coal 2, which is 80,39% held by Macarthur, with the balance held by the Noble Group, holds a 51% interest in the Moto coal JV.

Sanrus owns a 39,2% stake in the JV, while Edge Developments holds a 4,9% stake and H&J Enterprises also holds a 4,9% stake.

Edited by: Mariaan Webb

 

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