NRW takes Samsung to umpire
A drawn-out payment row over one of the Roy Hill iron ore project's biggest contracts is set to go before an international umpire.
NRW Holdings intends to take project manager Samsung C&T to the Singapore International Arbitration Centre after failing to resolve the six-month-long dispute.
The mining services provider put its shares into a trading halt today ahead of clarifying the matter.
WestBusiness understands that Samsung officials at a meeting a week ago refused to meet an NRW demand for payment for extra work and scope on the $620 million rail earthworks contract.
The standoff will result in NRW issuing a notification of dispute, a step which should see Samsung make progress payments to the WA company withheld since at least November.
The difference between the two sides' claims is at least tens of millions of dollars.
NRW's work on the 330km railway connecting the mine to Port Hedland has been completed.
The contractor's last statement about the dispute when a deadline to resolve the matter passed on March 31 was that talks were continuing in a "cordial and professional manner".
The notification of dispute has been likened to the gloves coming off. The first step is a meeting of chief executives to formalise the conflicting claims.
Fears of a loss on the contract has weighed on NRW's share price, which has fallen 37.5 per cent this year.
However, the stock on Friday closed up 3.5 cents, or 18 per cent, at 22.5 cents after hitting an intraday high of 25 cents.
Samsung earlier this year settled disputed claims with Roy Hill contractors Central Systems and McConnell Dowell, while Laing O'Rouke left the project prematurely.
NRW in its interim results booked revenue equal to costs incurred from the Roy Hill contract.
