Australia SC favours Griffin Coal
Lanco Infratech Limited (LITL), a leading integrated infrastructure conglomerate, has announced that the Supreme Court of Western Australia in its judgement has allowed its subsidiary Griffin Coal Mining Company Pty Ltd (GCMC) to enter into revised Coal Supply Agreement (CSA) with the Griffin Power entities which is in process of being acquired by Japanese consortium of Sumitomo Corp and Kansai Electric Power Co.
The Supreme Court of Western Australia has rejected the contention of Perdaman Chemicals and Fertilizers Pty Ltd (PCFL).
Commenting on the development, L Madhusudhan Rao, Executive Chairman, Lanco Infratech Limited, said, "The revised CSA will result in a gain of approximately AUD 150 Mn in NPV terms, including a substantial upfront payment to Griffin Coal Mining Company Pty Ltd."
Lanco Infratech through its Australian subsidiary, Lanco Resources Australia, acquired Griffin Coal Mining Company and Carpenter Mine Management for AUD 720 million in February 2011.
Last year Griffin produced over 3 million tonne of coal.