Lanco 'fully committed' to meeting local needs in Australia
Amid reports that it is facing issues over coal supplies in Australia, diversified group Lanco Infratech has said it is "fully committed" to meeting the local needs Down Under.business Updated: Jun 27, 2011 19:42 IST
Amid reports that it is facing issues over coal supplies in Australia, diversified group Lanco Infratech has said it is "fully committed" to meeting the local needs Down Under.
Lanco had acquired Australia's Griffin Coal for about AUD 730 million in March as part of efforts to increase its coal assets that are crucial for the company's proposed power plants.
"We are fully committed to meeting the local needs (of Western Australia). We are even looking at increasing our coal supply commitments for local needs," Lanco's CEO Prasad Kandimalla, who also heads Business Development in the power and infrastructure verticals of Lanco Infratech, said.
Besides facing a AUD 3.5 billion lawsuit by Perdaman Industries, media reports suggest that Lanco is grappling with issues related to coal supply to private power plant Bluewaters in Western Australia.
The West Australia Premier Colin Barnett had recently written to Lanco about coal supplies to local entities.
Confirming that the Premier had written to the company, Kandimalla said the focus (of the writing) was on general issues.
"There were some issues (regarding coal supply to local entities in Western Australia). Right now, things (in Western Australia) are moving in a positive direction (for us)," the he noted.
Griffin Coal mine has a resource base of over 1 billion tonnes.
Multinational Perdaman Industries has filed an AUD 3.5 billion (about Rs 16,600 crore) lawsuit in the Supreme Court of Western Australia, alleging that Lanco is not complying with a 25 year-long coal supply pact for its upcoming Collie urea plant in Western Australia.
"Lanco has not terminated the coal supply agreement. We are ready to comply with the pact, which is in place," Kandimalla said.
"(Against this backdrop) Perdaman's claims are baseless and there is no merit in it," he added.