Lanco Infra settles coal supply dispute with Perdaman

Lanco Infra settles coal supply dispute with PerdamanGriffin Coal, an arm of infrastructure giant Lanco Infratech, has finally reached an out-of-court settlement with Perdaman Chemicals over disputed supply of coal.

As part of the settlement, Griffin will pay A$7.5 million (nearly Rs42 crore) to Perdaman, plus legal costs to be determined by the Supreme Court of Western Australia.

The dispute had erupted when Griffin reneged on its commitment to supply coal to Perdaman's upcoming fertilizer plant. The case was filed in 2011.

Lanco said that the settlement was reached in accordance with the court's rules, adding that it resolved the case early and in a cost-effective way.

Nagaprasad Kandimalla, CEO (Business Development) at Lanco, said, "This settlement was reached pursuant to the rules of the Supreme Court of Western Australia. It allows for early and cost-effective resolution of such claims."

With the settlement, the lawsuit lodged in the court has finally come to an end.

Lanco also announced that it was now gearing up to start work on its coal project located in Western Australia, including the planned expansion of the Collie mine from 4 million tones to 15 million tones.

Stock in Lanco jumped by more than 10 per cent to close at Rs 11.60 a share on Monday.