Lanco hopes to resolve Griffin issue with Aus tax department

The Australian tax department has filed a winding up petition against Griffin Coal, owned by Lanco, for non-payment of tax arrears even as the Indian group has expressed hope that the matter would be resolved soon.

The Australian Taxation Office (ATO) has filed the petition against Griffin Coal in the wake of non-payment of tax arrears of about AUD 13.9 million, according to a document filed in an Australian court.

Diversified group Lanco had acquired Australia-based Griffin Coal Mining Company for about AUD 730 million in March 2011.

"As regards to the winding up proceedings commenced by the Australian Taxation Office, Griffin has been engaged and will continue to be engaged with the ATO on this matter," a Lanco spokesperson told PTI.

"No winding up order has been issued against Griffin and Griffin remains confident that there is no basis for winding up and that the matter with the ATO will be resolved as soon as possible," he said.

Lanco did not specify the amount of tax arrears.

When contacted, an ATO spokesperson declined comment.

"Due to confidentiality provisions in the tax administration act, we are unable to provide information or comment on the tax affairs of individuals or entities," the ATO official said in an e-mailed response.

Griffin has a production capacity of about four million tonnes per annum and Lanco has plans to increase the same to 16 million tonnes.

Meanwhile, a Lanco official said that Griffin and its parent, Lanco are committed to Collie operations sustainability and growth.

"Griffin is actively pursuing and investing in its expansion plans both for the interim and long term programmes, which will further contribute to the growth and development of Western Australia, particularly the community of the South West region," he said.

Griffin is based at the Collie Basin, in the south west of Western Australia.

In April this year, Lanco had agreed to settle the protracted AUD 3.5 billion-legal battle with Australia's Perdaman Chemicals over coal supply issues from Griffin. The settlement was without admission of any allegations raised by Perdaman.