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NTPC cancels coal mine contract

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World Coal,

Leighton Holdings contact to build the Pakri Barwadih coal mine in India has been cancelled, according to a company statement to the Australian Stock Exchange. The mine was to be built for Indian state-owned power company, NTPC, which is seeking to develop its own mines and increase imports in order to meet a shortfall in its coal supply.

Leighton called the move a “breach of contract” and “without foundation” and said that it would be taking legal action in response. The contract has a current value of AU$ 267 million to Leighton over the next five years, according to the company statement.

Leighton’s Thiess Mintec subsidiary was awarded the contract in 2010. It included the building of mine infrastructure and coal preparation plants, as well as removing surface soil, mining and loading all coal at the site over a 22 year period. The mine was expected to produce more than 300 million t of coal over its life.

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