NRW facing Samsung in Roy Hill court battle

NRW has entered a trading halt as it faces Samsung C&T in the WA Supreme Court over legal disputes relating to work at Roy Hill.

The two companies have been arguing over payments relating to rail earthworks, with NRW seeking $26 million from Roy Hill contractor Samsung C&T.

Samsung C&T is disputing the amount to be paid.

An announcement on the court decision is expected this Thursday.

This is the latest round of legal battles between Roy Hill contract Samsung C&T and sub-contractors over payment disputes.

Last week Samsung faced court over issues relating to failure to make payment to Thai metal suppler Best Tech & Engineering (BTE).

The court documents state BTE was contracted to supply around 15,000 tonnes of modular steel products for the iron ore mine and the Samsung refused to make contractually agreed payments, however Samsung claims that the company has breached agreements in their contract, allowing Samsung to seize a bank guarantee.

The company faced Laing O’Rourke in court over a decision to terminate a $215 million contract.

Laing O'Rourke had been in charge of the construction of structural steel and associated mechanical, piping, electrical and instrumentation works for the massive mine.

The contract also incorporated building the ore stockyard facilities to support the intermodal and export operations, comprising car dumpers, interconnection conveyors and transfer stations.

Roy Hill chief executive Barry Fitzgerald accused Laing O'Rourke of removing materials and equipment in breach of its contract and the termination agreement.

"Laing O'Rourke's motive for their actions has been questioned," Fitzgerald said.

"This win allows Samsung and its subcontractors to continue with construction works and maintain the schedule for delivery of this important project."

A spokesman for Laing O'Rourke denied the contractor took construction material from the site.

"Laing O'Rourke took delivery of materials at the direction of the court last week, with the judge ruling they be stored in a secure compound whilst Samsung's 'emergency relief' application was heard," he said.

According to the judgement, Laing O’Rourke claims it is owed about $39 million from Samsung, however the head contractor argues the sum is closer to $17 million.

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