Earthmoving contractor Emeco is pursuing legal action against an Indonesian mining contractor over $US1.95 million in debts.
Emeco has alleged that its Indonesian subsidiary had entered a binding equipment rental agreement with Indonesia’s PT Kideco Jaya Agung last year.
Under the agreement, Kideco utilised Emeco’s equipment for two months, incurring rental charges of $US1.95 million, Emeco said.
Emeco said today that it has commenced debt recovery action against Kideco in Jakarta’s district court in an attempt to recoup the funds.
Kideco responded by filing a loss and damages claim for $US22.3 million, which Emeco has dismissed as baseless and without merit.
The damages relate to losses arising from a disruption of Kideco’s port operations, which Kideco claims were a result of Emeco equipment falling from a barge.
Emeco said the Kideco claim would be challenged and defended “vigorously”.