SMS Rental, Paddington Gold in legal dispute

SMS Rental is suing a Norton Gold Fields-related company for almost $13 million, alleging the Kalgoorlie business has failed to pay invoices issued for mining and maintenance services.

The Welshpool-based company, also known as SMS Mining Services, yesterday lodged a writ in the Supreme Court of Western Australia naming Paddington Gold Pty Limited as the defendant.

Paddington Gold is part of Norton Gold Fields, which is owned by Chinese outfit Zijin Mining Group.

In a writ obtained by Business News, SMS Rental claimed Paddington Gold failed to pay for mining and maintenance services at multiple sites done between November 2019 to October 2022.

SMS Rental is claiming about $13 million from Paddington Gold but has alternatively claimed damages from the alleged breach of the agreement, equitable compensation, interest, and costs.

The parties were subject to an agreement, from October 2019, over mobile mining equipment maintenance services, according to the writ.

In the writ, SMS Rental alleged Paddington Gold has breached the terms of the 2019 agreement by refusing to pay invoices issued between July and December of 2022.

Paddington Gold operates Paddington Mill, about 35 kilometres north-east of Goldfields Highway in Kalgoorlie, the Kalgoorlie-based Federal open cut mining operations in the Golden Cities camp area, and the Enterprise open cut mine in Ora Banda.