Rio Tinto has started legal proceedings against Monadelphous for $493 million in damages related to the mining major’s iron ore processing facility at Cape Lambert, Western Australia.
Rio Tinto filed the complaint to the Supreme Court of Western Australia after a fire incident occurred during a maintenance shutdown by Monadelphous last year, which was claimed to destroy part of its iron ore operations.
Monadelphous had agreed to discuss the matter with Rio Tinto prior to the service of its court summons.
Rio Tinto alleges MEA breached its maintenance contract and therefore caused the fire.
“Although the writ does not specify any damages, Rio Tinto has separately informed MEA that its claim is for $493m in loss and damage,” Monadelphous stated in an Australian Securities Exchange media release.
Monadelphous stated it was working with Rio Tinto to seek a “satisfactory outcome” and would be defending its position against the mining giant’s legal action.