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A contractor on Citic Pacific’s Sino Iron development in Western Australia is suing the project’s lead contractor after it had work cancelled.
PerthNow reports litigation funder IMF Australia is funding Redline Contracting’s claims against Chinese contractor MCC.
MCC is leading construction at the $5.2 billion Sino project at Cape Preston in WA.
According to PerthNow Redline started work on an $80 million pipeline construction job in early 2010 but had the contract terminated by MCC later that year.
MCC previously cancelled a number of other contracts in late 2010.
PerthNow reports at the time the Construction, Forestry, Mining and Energy Union said MCC had "financial irregularities" that were behind the cancellations.
Earlier this year workers on the Sino project walked off the job after meeting with CFMEU heavyweight Joe McDonald.
Employees stopped work after concerns about foreign labour on the project, including rumours Chinese workers were being paid 40 per cent less than Australians for the same work.
The WA Chamber of Commerce and Industry later said the CFMEU and workers had broken the law by taking industrial action.
Image: KT Pipelines