A $100 million legal dispute has been settled between BC Iron and Watpac over funds owed after Watpac’s mining contract was terminated at the now mothballed Nullagine joint venture.
In December, they announced a temporary halt to production at the Nullagine joint venture (NJV).
BC Iron (BCI) terminated the mining contract with Watpac last year due to the continued decline of iron ore prices, with the company saying it was obligated to make a one off contract termination payment to Watpac.
Watpac launched legal action last year, claiming it was owed $12.5 million as BCI began gradually ending mining at the site, in a report by the West Australian.
BCI previously vowed to defend the action, planning a $92 million countersuit over Watpac allegedly breaching its service obligations during the contract.
Now the two have settled, with BCI providing a confidential sum to rest the case.
BC Iron chief executive officer Alwyn Vorster said they are “pleased to have settled this matter on acceptable terms”.