Rio Tinto goes to trial over Forge collapse

Rio Tinto has gone to trial over $185 million in claimed losses as a result of the collapse of engineering company Forge Group in 2014.

Forge failed to complete two power plant projects in the Pilbara for Rio Tinto prior to the group’s collapse in early 2014, resulting in the claim for losses after $63 million in bonds seized by the miner.

However the receiver for Forge, KordaMentha, has lodged counterclaims against Rio, and is pursuing for the return of bonds from five Forge contracts worth $100 million, The West Australian reported.

Counsel for KordaMentha  argued against Rio’s attempt to offset claims against Forge’s claims, and claimed that personal property laws  favoured other creditors ahead of Rio.

Senior counsel Kanaga Dharmananda said: “Personal property is defined by what it is not.”

“Other than land, everything else is capable of being personal property.”