Samsung wins $68 million over Roy Hill subcontractor

Image: Steven Doig

Roy Hill principle construction contractor Samsung C&T will seize $68 million in security bonds from Duro Felguera, following a Supreme Court win last week.

This is the second time Samsung has won against the Spanish manufacturer, taking the value of securities seized from it over the Roy Hill project to $132 million.

The Korean contractor has taken an estimated $1 billion loss on the Roy Hill project, and has been engaged in a number of legal battles with companies involved such as Roy Hill Holdings and other subcontractors.

Duro Felguera was the manufacturer and supplier of equipment for the processing plant and port facilities for Roy Hill.

Adjudicators had previously recommended that Samsung should have paid Duro around $70 million, according to the West Australian.

Justice Rene Le Miere ruled those determinations were inadmissible, as challenged by Samsung.

Duro argued that relinquishing the securities would damage the company’s reputation, however Justice Le Miere said the risks of damage to reputation were assumed in the agreement to provide security.

In December Samsung was authorised by the court to take $64 million in bonds, issued on behalf of Duro Felguera, for its part in a defunct joint venture with collapsed Forge Group.

Duro continued with a new contract with Samsung in 2014, independent of Forge.

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