Greater China

Shanxi Coal sues more companies as Qingdao scandal grows

Dalian: The legal cases continue to stack up in the ongoing fraud row involving Qingdao port. Shanxi Coal International is suing the Australian trading arm of China's Citic Resources Holding Ltd for $89.8m plus interest and costs against for breach of contract for failure to deliver a cargo of aluminium. The company has also launched action against Qingdao Port Group as well as heading for arbitration with units of Sinosteel for failing to deliver metal.

Chinese authorities launched an investigation in May into whether a private metals trading firm, Decheng Mining, and related companies had used fake warehouse receipts at Qingdao to obtain multiple loans secured against a single cargo of metal.

Shanxi Coal said in June it was suing Decheng and linked companies for more than $177 million in missed payments. [28/08/14]

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