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Tuesday, March 10, 2015

Samsung wins return of material - Roy Hill

Samsung wins return of material
The Supreme Court has ordered Laing O'Rourke to hand over construction materials for the Roy Hill iron ore project under a dispute with head contractor Samsung C&T.

Laing O'Rourke left the project last month after failing to resolve commercial differences with Samsung over a $212 million port stockyard construction contract.

Gina Rinehart's majority-owned Roy Hill Holdings told the court that a delay to the $10 billion Pilbara project would cost at least $77 million a month.

Roy Hill chief executive Barry Fitzgerald accused Laing O'Rourke of removing materials and equipment in breach of its contract and a termination agreement struck last month.

"Laing O'Rourke's motive for their actions has been questioned," Mr Fitzgerald said.

"This win allows Samsung and its subcontractors to continue with construction works and maintain the schedule for delivery of this important project."

A spokesman for Laing O'Rourke said the contractor had not removed any materials from site or sought to do so.

"Laing O'Rourke took delivery of materials at the direction of the court last week, with the judge ruling they be stored in a secure compound whilst Samsung's 'emergency relief' application was heard," he said.

The spokesman said the items had been delivered, with the court recommending the matters be referred for further commercial proceedings.

Supreme Court Justice James Edelaman found that Laing O'Rourke had retained the $35 million materials because it claimed not to have been paid in full for the items.

According to the judgment, Laing O'Rourke is claiming about $39 million from Samsung in outstanding payments under their contract.

Samsung claimed to owe the contractor about $17 million, it said.

Contractors Goodline and Civmec have taken over Laing O'Rourke's work on the project.

Roy Hill also said Samsung had also reached a commercial settlement with Leighton Holdings subsidiary Thiess over work on the mine processing plant.

The Thiess contract was originally valued at $330 million.

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