- Write by:
-
Monday, August 3, 2020 - 12:26:57 PM
-
570 Visit
-
Print
Mining News Pro - Rio Tinto has started legal proceedings against Monadelphous for $493 million in damages related to the mining major’s iron ore processing facility at Cape Lambert, Western Australia.
Rio Tinto filed the complaint to the Supreme Court of Western Australia after a fire incident occurred during a maintenance shutdown by Monadelphous last year, which was claimed to destroy part of its iron ore operations.
Monadelphous had agreed to discuss the matter with Rio Tinto prior to the service of its court summons.
Rio Tinto alleges MEA breached its maintenance contract and therefore caused the fire.
“Although the writ does not specify any damages, Rio Tinto has separately informed MEA that its claim is for $493m in loss and damage,” Monadelphous stated in an Australian Securities Exchange media release.
According to Monadelphous, this includes $35 million in material damage costs to rebuild the Sinter Fines processing facility, along with $458 million for a temporary operation solution due to the company’s inability to produce iron ore during reconstruction.
“MEA denies Rio Tinto’s allegations and claimed losses (which MEA considers have not been substantiated),” Monadelphous said.
“Further, the contract between Rio Tinto and MEA, which governed the maintenance work performed by MEA, contains exclusions and limitations of liability which will be relied upon by MEA in defence of the claim.”
A total limit of $150 million in liability insurance is in place for MEA, and covers property damage claims, along with associated losses.
The engineering company “is unaware of any reason” why the insurance policies would not indemnify MEA for its liability toward Rio Tinto.
Monadelphous stated it was working with Rio Tinto to seek a “satisfactory outcome” and would be defending its position against the mining giant’s legal action.
Short Link:
https://www.miningnews.ir/En/News/577780
Anglo American CEO Duncan Wanblad is meeting on Friday South African mines minister Gwede Mantashe for the first time ...
China’s leading metals companies, including its state iron ore buyer, are considering their next moves following BHP ...
BHP Group (ASX: BHP) has deployed a senior team including its chief executive officer to South Africa as the world’s ...
A takeover of Anglo American Plc would need to be pitched at more than £30 ($37.6) per share, a higher price than BHP ...
BHP Group Ltd.’s proposal for Anglo American Plc to spin off platinum and iron ore units before a takeover would likely ...
Iron ore will average more than $100 a ton this year as the worldwide market remains tight, despite China’s property ...
Iron ore futures prices fell on Monday after weak industrial data in top consumer China and the completion of of ...
Brazil’s Corumba region could more than double iron ore shipments through neighboring Uruguay this year if there is ...
When former boss Mark Cutifani left Anglo American Plc in mid-April 2022, things had rarely looked better for the ...
No comments have been posted yet ...