Australia?s Perdaman Industries has sued Lanco Infratech for A$ 3.5 billion for not complying with a coal supply agreement. The company filed the suit in an Australian court through its wholly-owned subsidiary, Perdaman Chemicals and Fertilisers Pty Ltd.
In a written response to FE, Perdaman spokesperson said that the party was engaged unconscionable conduct under the Australian Consumer Act. Lanco officials were not available for comments.
The spokesperson said that it was a binding coal supply agreement for a 25-year supply of coal for about 2.8 million tonnes per year. ?The next course of action is the first court hearing scheduled for 27th July,? the spokesperson added. The Perdaman official refused to give more details about the matter.
The group company, Perdaman Chemicals and Fertilisers Pty Ltd, had invested over Rs1,000 crore for the coal plant which is now under dispute. As per the contract, about 89 million tonnes of coal is to be supplied to Perdaman Chemicals? upcoming Collie urea project in Western Australia.
Perdaman Industries is a Western Australia-based multinational group with focus on urea production for local and international use. Perdaman had entered into a 25-year coal supply pact with Griffin Coal, which was acquired by diversified group Lanco for A$730 million in March 2011.