The Metallurgical Corporation of China is being sued by Cape Lambert Resources (ASX:CFE) for a payment of $80 million.
The Perth based iron ore company had sold its flagship Cape Lambert Magnetite project to MCC in 2008 for $400 million. The mine is located 20 km outside Karratha in Western Australia.
Tony Sage, head of Cape Lambert, said that MCC had failed to make the final $80 million payment which was due in December last year. All discussions to try and resolve the matter have not been successful so now legal action has been commenced against them so that the Supreme Court can decide the matter.
The legal action has been initiated against Metallurgical Corporation of China’s subsidiary MCC Australia Sanjin Mining as well. Cape Lambert is being represented by Martin Bennet of the Lavan Legal firm in Perth.
MCC had announced plans to build up a 25 million tonnes per year operation which would employ almost 2,500 people earlier this month. The company was planning to start construction on the project in 2012 hoping to export the iron ore from Port Anketell harbour from 2015 onwards.