Mumbai, Dec. 24: Lanco Infratech today said the Supreme Court of Western Australia had ruled in favour of its subsidiary Griffin Coal Mining Company, which will result in a gain of Aus $150 million for the latter.
The ruling will allow Griffin Coal to sign a revised fuel supply agreement with Bluewaters Power Station.
Griffin’s Bluewaters power entities are set to be acquired by a Japanese consortium of Sumitomo Corp and Kansai Electric Power Co.
Lanco — the diversified infrastructure conglomerate — said the court had rejected the contention of Perdaman Chemicals and Fertilizers Pty Ltd, which had sought an interim stay on the deal.
Last year, Perdaman had filed an Aus $3.5-billion lawsuit against Lanco over supplies from Griffin Coal for its urea plant in western Australia.
“The revised coal supply agreement will result in a gain of approximately Aus $150 million in net present value terms, including a substantial upfront payment to Griffin Coal Mining Company,” L. Madhusudhan Rao, executive chairman of Lanco Infratech, said.
Lanco Infratech had acquired Griffin Coal Mining Company and Carpenter Mine Management for Aus $720 million in February 2011 through its Australian subsidiary Lanco Resources Australia,
Last year, Griffin produced over 3 million tonnes of coal.
Following today’s development, shares of Lanco Infratech surged 7.42 per cent, or 0.93 points, to close at Rs 13.46 on the Bombay Stock Exchange.