Samsung C&T suffers AU$1b loss in Australia mining project

[THE INVESTOR] Samsung C&T, the construction and trading unit of Samsung Group, have lost AU$1 billion on a mine construction project in Australia, Financial Times reported on July 12.

According to the report, the company recently completed work on the Roy Hill iron ore mine in Western Australia. But it is still fighting court battles with contractors for AU$65 million in unpaid subcontracting work.

 
“The Roy Hill Project was the company’s first mining construction project, and there are no other mining projects that the company is working on,” Samsung C&T was quoted as saying.

In 2013, the company won a AU$5.6 billion contract to build the Roy Hill mine. The company developed a processing plant to export iron ore produced there, railroads and harbor infrastructure.

But the work ran over schedule and over budget. In January, the company revealed it would book a AU$1 billion loss on the contract.

More losses are expected in the coming months as the company is still dealing with court battles. In the latest dispute between the company and contractors, Duro Felguera, a Spanish company, filed a lawsuit seeking AU$65 million payment for unpaid work at the mine.

The company said it will take all proper steps to resolve them in accordance with the law.

(theinvestor@heraldcorp.com)