Thursday, April 29, 2010

Fortescue To Pay Millions In Compensation

UK Shipping Contractor Awarded $78 million


The High Court in London has ordered Australian iron ore miner Fortescue Metals Group to pay a shipping contractor $US78 million in compensation after losing a court battle.

The court heard that Fortescue suspended a number of shipping charter contracts in 2008 at the time of the global financial crisis, including one with UK company, Zodiac Maritime. Zodiac took the matter to the British High Court and was awarded $78 million in damages yesterday.

"The litigation commenced when Fortescue suspended a number of charter contracts in 2008 due to turmoil in international freight and iron ore markets," Fortescue said in a statement on Thursday.

"Other shipping contracts that were in dispute were renegotiated and settled prior to any court hearing," the company said.

FMG also said it had included $21 million for the claim in its half-year accounts and the remaining $62 million would be factored into the full-year results.

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