Ex-Griffin Coal owner claims Oz mines back from Lanco

Adding woes to Lanco Infratech embroiled in a legal battle with Perdaman Industries over coal supply issues in Australia, Ric Stowe - the former owner of Griffin Coal - is now claiming the mines back saying that current owner Lanco did not stick to its development plans.

Lanco Infratech Ltd, through its step down Australian subsidiary, Lanco Resources Australia Pty Ltd, took over Griffin Coal Mining Company Pty Ltd and Carpenter Mine Management Pty Ltd (Griffin Coal) in March last year.

Stowe, in a claim lodged with Western Australian Mining Warden's Court, asked for exploration and mining rights for land containing huge coal reserves that are part of Lanco's expansion plans.

He is claiming that the Indian infra giant, as required under the state laws, has not spent enough money on exploration and developing the tenements.

When contacted, a senior Lanco Group official said they will be presenting their version to the Warder's court.

According to Lanco Infratech CEO (Business Development) Nagaprasad Kandimalla, they received a notice from the Warden's Court and are preparing their argument.

"There is no truth in their claim. The expansion program undertaken by us will see the company's extensive reserves tapped and production increased from the present 4 million tonnes per annum to up to 20 million tonnes per annum," Prasad told PTI.

"They should compare this growth when it was being run by them and prior to the investment and commitment made by Lanco," he added.

Prasad said the company will present its papers before the Western Australian Mining Warden's Court when the issue comes up for hearing.

Griffin Coal may generate revenues up to USD 160 million in this fiscal, a senior official of the group had said earlier.

Meanwhile, the Australian Court which is hearing Lanco Perdaman case will take up the issue on April 2, sources close to the development said.

Perdaman Chemicals, whose parent company is Perdaman Industries, filed a AUD 3.5 billion lawsuit against Lanco in June last year for not complying with a coal supply agreement signed before Griffin Coal collapsed.

Griffin Coal has terminated coal supply agreement with Perdaman Chemicals on August 30 last year.