News Wrap

IN THIS morning’s News Wrap: Carbon delay “to cost billions”, warns business; Cascade Coal rejects claim by broking firm; and Mende says Indian dispute will not hurt AMCI.

Staff Reporter

Carbon delay 'to cost billions', warns business

Business and state governments have warned the economy faces a multi-billion-dollar drag if Labor and the Greens block Prime Minister-elect Tony Abbott's plans to repeal the carbon and mining taxes, amid fears an obstructionist Senate could keep the carbon price in place until 2015, according to The Australian.

After the Prime Minister-elect instructed his department on Sunday to begin drafting the legislation to abandon the carbon-pricing scheme, business groups lined up to urge parliament to respect his government's mandate.

Cascade Coal rejects claim by broking firm

A mining company at the centre of a corruption probe involving former NSW Labor minister Eddie Obeid is trying to rebut a cross-claim by a broking firm it contracted to raise cash to buy out the Obeid family’s stake in a coal venture, according to the Australian Financial Review.

Cascade Coal, a private company that won a coal exploration licence in 2009 over the Obeid family farm, is already being sued by Sydney businessman Denis O’Neil in the Federal Court to recover his $8 million investment in the company.

He is also suing Southern Cross Equities, a broking firm Cascade contracted in November 2010 to raise $28 million in equity.

O’Neil, whose investment formed part of the private placement, claims he was misled about how the money would be spent.

Mende says Indian dispute will not hurt AMCI

American Metals & Co International co-founder Hans Mende believes the private equity group will not be impacted by the dispute with the Steel Authority of India after AMCI failed to deliver 1 million tonnes of coal six years ago, according to the Australian Financial Review.

Mende also reaffirmed AMCI was a long-term shareholder of Whitehaven Coal,

The Supreme Court of India last month upheld a decision by the International Court of Arbitration for AMCI and Vale Australia to pay $173 million to India’s largest integrated iron and steel producer after the company was not supplied the 1 million tonnes of coal agreed to in 2007.

Mende said: “AMCI will not be affected by this dispute”