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Chinese court awards Jiangxi Copper $182 million in contract dispute

Reuters2021-07-03

July 2 (Reuters) - Jiangxi Copper , one of China's biggest copper producers, said on Friday a court had ordered a former client of its subsidiary to pay it 1.18 billion yuan ($182.32 million) in a contract dispute dating back to 2017.

The case is one of four litigations listed in the most recent annual report of Jiangxi Copper, whose profits were weighed down by bad debt writedowns last year.

Shanghai Jiangxi Copper Trading Company Ltd (Shanghai JCT) agreed to supply copper wire maker Shandong Xinhui Copper Materials with copper at the end of 2016, delivering some 30,530 tonnes of the metal the following year, according to an exchange filing in 2019.

It sued Xinhui that year, alleging underpayment from 2017 onward.

A judgment from the Shanghai No. 1 Intermediate People's Court received by Jiangxi Copper on Thursday confirmed Shanghai JCT had the right to just under 1 billion yuan of goods, plus a 179.33 million yuan default payment and 350,000 yuan in legal fees from Xinhui, Jiangxi Copper said in Friday's filing.

Xinhui and its representatives could not immediately be reached for comment outside normal business hours.

"At present, only the first hearing was completed for the litigation, and the defendants may file an appeal," Jiangxi Copper said, noting Xinhui was currently undergoing bankruptcy proceedings.

It is too early to say if the judgment will have any impact on the company's profits, said Jiangxi Copper, which has made a 628.45 million yuan provision for bad debt.

($1 = 6.4721 Chinese yuan renminbi)

(Reporting by Tom Daly Editing by Paul Simao)

((tom.daly@thomsonreuters.com; +86 10 5669 2119;))

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  • muscleman
    ·2021-07-03
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