Duro Felguera believes it is owed more than $100 million by Samsung C&T for work at Gina Rinehart’s Roy Hill mine.
The Spanish contractor has lodged a claim for at least $65 million against Korean firm Samsung C&T over what it alleges are unpaid bills, carrying out its rights under the Construction Contracts Act, allowing it to suspend any obligations to Samsung.
Duro Felguera has halted work at Roy Hill’s processing plant as well as its rail project, and according to The West Australian will not continue discussions over fixing alleged defects until the payment disputes have been settled.
“The unpaid determinations together amount to an outstanding statutory debt of around $65 million, which Duro Felguera is pursuing through the courts and will be heard in late July. Interest on that unpaid amount continues to accrue at more than $10,000 per day,” Duro Felguera operations Raul Serrano said.
This was the second time Samsung won against the Spanish manufacturer, taking the value of securities seized from it over the Roy Hill project to approximately $132 million, after Samsung was authorised by the courts in December to take $64 million in bonds, issued on behalf of Duro Felguera, for its part in a defunct joint venture with collapsed Forge Group.
The Korean contractor has taken an estimated $1 billion loss on the Roy Hill project, and has been engaged in a number of legal battles with companies involved such as Roy Hill Holdings and other subcontractors.
Duro Felguera was the manufacturer and supplier of equipment for the processing plant and port facilities for Roy Hill.