Welshpool-based gold explorer Mineral Commodities Ltd's has commenced legal action against Perth-based ProMet Engineers Pty Ltd, claiming the project managers failed to work towards the building of a diamond pan plant at its Sierra Leone Oversize Tailings Dump.
Mineral Commodities is seeking damages for breach of the contract and contraventions of the Trade Practices Act, interest and costs.
In the meantime the plant remains on care and maintenance and site personnel are making all necessary preparations to the plant to install alternative processing plant, Mineral Commodities said in an announcement.
The full text of a company announcement is pasted below
Mineral Commodities Limited (MRC) advises that on 12 October 2007 it commenced legal proceedings in the Federal Court of Australia (the Proceedings) against ProMet Engineers Africa (Pty) Ltd (ProMet), ProMet Engineers Pty Ltd, James Dinsdale Cribbes, Robert John Bennett and Richard George Ford.
ProMet and MRC entered into a contract on 6 June 2006 (the Contract) whereupon ProMet agreed to manufacture, supply, install, erect and commission a diamond pan plant at the company's No. 11 Oversize Tailings Dump at Koidu in the Republic of Sierra Leone.
The Proceedings have eventuated as a result of ProMet's failure to manufacture, supply, install, erect and commission a diamond pan plant at the company's No. 11 Oversize Tailings Dump in Sierra Leone in accordance with the terms of the Contract.
MRC claims in the Proceedings that:
ProMet breached the terms of the Contact; andProMet Engineers Africa, ProMet Engineers, Cribbes, Bennett and Ford:- engaged in misleading and deceptive conduct, and
- breached s.52 of the Trade Practices Act.
MRC claims damages for breach of the Contract, as well as damages for contraventions of the Trade Practices Act, interest and costs.
In the meantime the plant remains on care and maintenance and site personnel are making all necessary preparations to the plant to install alternative processing plant.
