Lanco Infra gets court approval to revise coal supply agreement with Griffin

Lanco Infra gets court approval to revise coal supply agreement with GriffinIntegrated infrastructure conglomerate, Lanco Infratech Limited (LITL) has said that the Supreme Court of Western Australia has ruled in favor of Lanco and this has allowed its unit, Griffin Coal Mining Company Pty Ltd (GCMC) to revise coal supply agreement (CSA) with the Griffin Power entities.

Lanco Infratech scored a legal battle against the Perdaman Chemicals. Lanco said in a filing with the stock exchange that the court did not agree with the contentions made by Perdaman Chemicals and Fertilisers Pty Ltd (PCFL).

L Madhusudhan Rao, executive chairman, Lanco Infratech Limited said, "The revised CSA will result in a gain of approximately A$150 million in net present value terms, including a substantial upfront payment to Griffin Coal Mining Company Pty Ltd."

Lanco Infratech had acquired Coal Mining Company and Carpenter Mine Management through its Australian subsidiary, Lanco Resources Australia for about A$ 720 million in February 2011. Griffin produced 3 million tonne of coal during the previous year.

Meanwhile, Japanese consortium of Sumitomo Corp and Kansai Electric Power Co is moving to acquire Griffin Power entities.