Monadelphous (ASX:MND) in $493 million wrangle with Rio Tinto (ASX:RIO)

Company News

by Kathy Skantzos

Engineering company Monadelphous (ASX:MND) has received a writ of summons from Rio Tinto (ASX:RIO) filed in the Supreme Court of Western Australia for a $493 million claim relating to a fire incident.

The incident occurred in January 2019 at Rio Tinto's iron ore processing facility at Cape Lambert in WA during maintenance shutdown services.

The $493 million claim comprises $35 million in material damage costs, and $458m for a temporary operating solution and business interruption losses arising from the inability to process iron ore during the reconstruction of the facility.

Monadelphous denies the allegations and claimed losses, stating the contract with the miner which governed the maintenance work contains exclusions and limitations of liability.

Shares in Monadelphous (ASX:MND) are trading 4.3 per cent lower at $8.53.
 

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.