GR Engineering settles legal battle with Gold Ridge

GR Engineering has finally reached an agreement with St Barbara subsidiary Gold Ridge mining over a long running legal battle.

The two initially went head to head in June last year after GR sought to "to recover outstanding costs and associated damages of around $4.5 million relating to a lump sum engineering, procurement and construction contract".

It related to the expansion and refurbishment of the Gold Ridge mine in the Solomon Islands.

GR initially announced that it would be pursuing legal action in its 2011 full year results, and half yearly report in 2012.

Soon after this it was hit by a massive $25 million counterclaim from Gold Ridge.

Gold Ridge stated that it was seeking damages relating to alleged defects from its EPC contract, as well as gold losses.

Soon after this it upped its claim against the contractor, announcing that it would seek $47 million in damages.

Now the two have settled arbitration proceedings.

According to GR Engineering "settlement has been achieved on the basis that in consideration for GR Engineering and [Gold Ridge] releasing each other from their respective claim and counterclaim and termination of all arbitration proceedings, Gold Ridge will pay to GR Engineering a cash sum of $2.65 million.

"GR Engineering carries a provision of $1.52 million against the Gold Ridge claim.

"The settlement will result in a further write-off of $0.49 million against the amount owed by [the miner].

The contractor added that its "directors consider that this write off amount will be more than offset by the avoidance of further legal costs and the opportunity to establish a good working relationship with St Barbara".

Now that it has settled arbitration St Barbara the two are discussing the possibility of continued work at Gold Ridge

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