Australia-based Leighton Holdings has lost its $5.5bn mine development and coal mining contract with India’s electricity producer NTPC.

A mining subsidiary of Leighton, Thiess Minecs, had secured the contract in December 2010 to develop the Pakri Barwadih coal project, which was expected to produce 300 million tonnes of coal over a 22 year period.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

According to Leighton, the contract is currently worth about A$267m ($250m) to Thiess over the next five years.

"Thiess will initiate legal proceedings to recover the monies called and in respect of the notice of termination issued by NTPC."

NTPC has attempted to develop its own mines and increase imports to meet demands; however, protests in the eastern state of Jharkhand delayed the opening of the Pakri Barwadih site.

The electricity producer has also called in A$18.5m ($17.3m) of bank guarantees relating to the project.

Leighton said in a statement that it is Thiess Minecs’ position that the action taken by NTPC is in breach of the contract and without foundation.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

"Thiess will initiate legal proceedings to recover the monies called and in respect of the notice of termination issued by NTPC," the company said.

Separately, the company announced that Thiess Minecs CEO Raman Srikanth was arrested after Hyderabad-based Roshni Developers filed a complaint that was the subject of ongoing civil arbitration proceedings in Singapore.

"Thiess Minecs has advised the complaint is unfounded and urgent applications are being made to the courts in Hyderabad to dismiss it," Leighton said.

Energy