Amid the two companies locked inside a AUD 3. 5 billion legal tussle in Sydney, Griffin Coal -- a subsidiary of Lanco -- offers terminated the coal supply agreement (CSA) with Perdaman Chemical substances and Fertilisers.
"Immediately upon receipt of the purported notice associated with termination Perdaman gave notice to Griffin Coal and Lanco how the purported termination was wrongful and a further breach from the Coal Supply Agreement (CSA) by Griffin, " Perdaman said inside a statement.
Lanco yesterday said it terminated the CSA with Perdaman since the company failed to achieve financial closure for the actual latter's upcoming Collie urea plant in Western Sydney.
Griffin Coal, which was snapped up by Lanco with regard to 730 million Australian dollars (AUD) in March, would be to supply about 2. 7 million tonnes of coal annually towards the urea plant.
"Perdaman will vigorously pursue this case with the Supreme Court of Western Australia against Lanco and Griffin and hold them responsible for their action and conduct, " Perdaman Chemicals as well as Fertilisers Pty Ltd CMD Vikas Rambal told PTI.
Perdaman noted the company has reserved all of its rights with regards to Griffin's unlawful conduct.
On August 28, Perdaman said its solicitors gave formal warning that "Griffin had no legal capacity to purport to terminate the contract".
As per the actual CSA, which was inked between Australia-based Griffin Fossil fuel and Perdaman Industries, the financial closure was to become achieved by August 29.
Lanco Infratech CEO (Business Development) Nagaprasad Kandimalla had said that Griffin Coal has got the right to terminate the CSA if Perdaman didn't achieve financial closure.