Coal of Africa to Defend 'Vigorously' Against Rio Tinto Claim
March 08 2016 - 2:35AM
Dow Jones News
By Alex MacDonald
LONDON--Coal of Africa Ltd. (CZA.AU) said Tuesday that it will
defend its interests "vigorously" against a claim by a unit of Rio
Tinto PLC (RIO) for a $19 million accelerated payment after
alleging a breach of contract relating to the purchase of two coal
assets in South Africa.
CoAL and fellow partner MbeuYashu agreed to purchase the Chapudi
Coal and Kwezi Mining Exploration Pty Ltd. properties from Rio
Tinto and Kwezi for $75 million in 2012. The two partners have
already paid $56 million, leaving $19 million to be paid by June
15, 2017.
"CoAL and MbeuYashu have met, and will continue to meet all of
their payment obligations to Rio Tinto and Kwezi," the London and
Australia-listed miner said.
"On legal advice [however] CoAL will dispute the validity of the
notice. If Rio Tinto and Kwezi pursue the matter, CoAL and
MbeuYashu will defend it vigorously."
-Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
March 08, 2016 03:20 ET (08:20 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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