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DM Civil, Karara at odds over $32m

A long-running dispute between Karara Mining and DM Civil over a contract originally worth $26 million has highlighted the extraordinary gulf that often arises between project developers and contractors when their relationship sours.

Karara hired DM Civil six years ago to build a 135-kilometre pipeline together with bore fields, pump stations and associated infrastructure.

The pipeline was part of the Karara iron ore project in the Mid West, which ended up costing more than $3 billion (about 65 per cent above the original budget).

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