After Lanco Infratech announced recently the formal termination of coal supply pact with the company, Australia's Perdaman Industries termed the Indian group's move as "wrongful".

Perdaman in a statement said that "Immediately upon receipt of the purported notice of termination Perdaman gave notice to Griffin Coal and Lanco that the purported termination was wrongful and a further breach of the Coal Supply Agreement (CSA) by Griffin.”

Amid the two companies locked in a AUD 3.5 billion legal tussle in Australia, Griffin Coal a subsidiary of Lanco has terminated the coal supply agreement with Perdaman Chemicals and Fertilizers.

Lanco earlier said it terminated the CSA with Perdaman as the company failed to achieve financial closure for the latter's upcoming Collie urea plant in Western Australia.

Griffin Coal, which was snapped up by Lanco for AUD 730 million in March, is to supply about 2.7 million tonnes of coal annually to the urea plant.

(Sourced from BS)