MCC ordered to set aside Cape Lambert payment
MCC ordered to set aside Cape Lambert payment

China's Metallurgical Corporation of China (MCC) has been ordered to put a disputed payment of $80 million into an escrow account ahead of WA Supreme Court proceedings launched by Tony Sage's embattled Cape Lambert Resources.

The dispute relates to the final payment due in the sale of the Cape Lambert magnetite iron ore project to MCC in mid-2008.

Cape Lambert says it has already received $320 million in payments but contests it has not yet received an outstanding payment of $80 million, which was part of the original sales agreement.

The company contests the final $80 million payment was due on the earlier of MCC receiving mining approval or two years following settlement of the deal.

It launched legal action against MCC in September 2010 to recover the money.

Yesterday the WA Supreme Court ordered MCC to pay the $80 million into an escrow account pending resolution of the dispute.

Separately Cape Lambert is still in negotiations with the Australian Tax Office over an unforeseen amended tax assessment, comprising $66.9 million in back taxes and $28.8 million penalties.

Cape Lambert shares closed down half a cent, or 1.54 per cent, at 32 cents.

The West Australian

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