Leighton coal fight rages in India

Leighton Holdings says that the biggest client at the Pakri Barwadih coal mine operated by Thiess Mines in India is attempting to scrap a five-year contract worth $267 million, according to the Sydney Morning Herald.

The client, India's largest power generator, NTPC Ltd, did not immediately answer calls from Reuters seeking comment.

The Australian company said NTPC was in breach of its contract by seeking to terminate it, adding that the case would not have any “material impact” on Leighton's financial results.

NTPC has reportedly said coal was being illegally extracted from its Pakri Barwadih block and sold by outsiders, adding that NTPC had requested the district commissioner of the area where the block was located to take action to stop it.

Leighton said NTPC has already called $18.5 million worth of bank guarantees issued by Thiess Minecs and added that it will initiate legal proceedings to recover the bank guarantees, as well as against the termination notice.

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