Lanco's termination of coal supply pact wrong, says Perdaman

A day after Lanco Infratech announced the formal termination of coal supply pact with the company, Australia's Perdaman Industries on Wednesday termed the Indian group's move as "wrongful".

Amid the two companies locked in a AUD 3.5 billion legal tussle in Australia, Griffin Coal — a subsidiary of Lanco — has terminated the coal supply agreement (CSA) with Perdaman Chemicals and Fertilisers.

"Immediately upon receipt of the purported notice of termination Perdaman gave notice to Griffin Coal and Lanco that the purported termination was wrongful and a further breach of the Coal Supply Agreement (CSA) by Griffin," Perdaman said in a statement.

Lanco yesterday said it terminated the CSA with Perdaman as the company failed to achieve financial closure for the latter's upcoming Collie urea plant in Western Australia.

Griffin Coal, which was snapped up by Lanco for 730 million Australian dollars (AUD) in March, is to supply about 2.7 million tonnes of coal annually to the urea plant. "Perdaman will vigorously pursue this case through the Supreme Court of Western Australia against Lanco and Griffin and hold them accountable for their action and conduct," Perdaman Chemicals and Fertilisers Pty Ltd CMD Vikas Rambal told PTI. Perdaman noted the company has reserved all of its rights in relation to Griffin's unlawful conduct.