SYDNEY (Yosefardi) – Metallurgical Corporation of China (MCC) Limited has been ordered to pay A$80 million into an escrow related to arbitration lawsuit filed by Cape Lambert Resources Ltd.
Cape Lambert commenced legal action in the Supreme Court of Western Australia against MCC to recover the final A$80 million payment from the sale of the Cape Lambert magnetite iron ore project in mid-2008.
Cape Lambert received payments of A$320 million in 2008, with the final payment of A$80 million due pursuant to the agreement. Cape Lambert contends MCC are in breach of the agreement by failing to make the final payment.
In March 2013, the Court made orders referring to the dispute to arbitration in Singapore. In June 2013, a hearing was held by the Arbitrator to determine the escrow dispute, wherein MCC is required to pay A$80 million into an escrow account within 21 business days, pending the determination of the substantive dispute.