OMM wins court action against Promet

The Supreme Court has ruled in favour of OM Holdings in its action against Promet Engineers.

According to the company it won its case against the process plant design engineers for the Bootu Creek Manganese Mine, and was entitled to damages amounting to more than $5 million.

OMM's claim relates to the process plant design defects, which the miner discovered during the commissioning of the mine during 2005 and 2006.

The miner says its claim "essentially concerned with recovering the costs of the rectification works that [OMM] undertook to rectify those design defects during 2006 and 2007".

OMM initially brought its claim against both Promet and Lonsdale Investments.

The two defendants in turn brought a claim against OMM for alleged unpaid invoices.

The Supreme Court has now found in favour of OMM, ordering Lonsdale to pay OMM $5 474 450, and Promet to pay the miner $256 425.

However OMM was also ordered to pay Lonsdale $1999 in respect to the two's alleged claim of $533 000.

According to the Court "Lonsdale and Promet were negligent, and breached the duty of care owed by then as process plant design engineers to OMM".

Despite this, the miner was unsuccessful in its action against Lonsdale and its director James Dinsdale, in which it accused them of engaging in misleading or deceptive conduct and a breach of both the Trade Practices Act and the Fair Trading Act.

The proceedings have now been adjourned to a further hearing regarding legal costs of the action, and the interest payable to OMM for the damages won.

OMM says it will "now take steps to enforce the judgment against Lonsdale and Promet".

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.