Coal of Africa: Rio Tinto payment dispute arises
Coal of Africa Limited will dispute claims that it was in breach of obligations in connection with its acquisition of the Chapudi coal assets, part of the Greater Soutpansberg Project in Limpopo.
|||Johannesburg - Coal of Africa Limited (CoAL) said yesterday that it would dispute claims that it was in breach of obligations in connection with its acquisition of the Chapudi coal assets, part of the Greater Soutpansberg Project in Limpopo.
Read: Coal of Africa: HEI to boost stake
CoAL and its subsidiary, MbeuYashu, received a notice from Rio Tinto Minerals and Kwezi Mining alleging that all amounts owed by CoAL and MbeuYashu pertaining to the acquisition were now due for payment.
CoAL said in a statement that the original amount owed by CoAL and MbeuYashu to Rio Tinto and Kwezi was $75 million (R1.15 billion) of which $56m had already been paid and an amount of $19m was still owing.
“Payments to Rio Tinto and Kwezi are due finally by June 15, 2017. CoAL and MbeuYashu have met, and will continue to meet all of their payment obligations to Rio Tinto and Kwezi. On legal advice, CoAL will dispute the validity of the notice,” CoAL said in a statement.
BUSINESS REPORT