09/08/2012 - 15:57

Cape Lambert, MCC dispute sent to arbitration

09/08/2012 - 15:57

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A dispute between Cape Lambert Resources and the Metallurgical Corporation of China over an $80 million payment stemming from the 2008 sale of a magnetite project near Karratha has been referred to arbitration in Singapore.

Cape Lambert commenced legal action back in September 2010 against MCC, after the Chinese resources giant failed to pay the final $80 million due from the sale of the Cape Lambert magnetite project in mid-2008.

The Supreme Court of Western Australia ordered MCC to pay $80 million into an escrow account in May, pending resolution of the dispute.

Cape Lambert today announced the court had handballed the dispute to an arbitrator in Singapore.

“Subsequent to its reasons, the court has informed the parties of the indicative order, which will refer the payment issue to be determined by an arbitrator in Singapore as a preliminary matter,” Cape Lambert said in a statement.

At close of trade today, Cape Lambert stocks were down 3.3 per cent, at 29 cents.

 

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