Latest News

Process plant engineers found responsible for design defects and fined $5.7m

OM Manganese has been successful in its court action against the process plant engineers who designed the Bootu Creek Manganese Mine. The WA Supreme Court has ruled that OMM was entitled to damages in a total amount of $5.7 million. OM Manganese (OMM) is a wholly-owned subsidiary of OM Holdings.

OMM’s claim related to the process plant design defects, which OMM discovered upon commissioning of the Bootu Creek Manganese Mine during 2005 and 2006.

OMM's claim was concerned with recovering the cost of the rectification works that it undertook to rectify those design defects during 2006 and 2007. OMM’s claim was brought against Londsdale Investments (being the company previously called Promet Engineers) and Promet Engineers.

Londsdale and Promet had also brought a claim against OMM for alleged unpaid invoices.

The Supreme Court found that OMM had succeeded in its claim for damages and ordered that Londsdale pay OMM $5,474,450.59 and that Promet pay OMM $256,425. OMM was ordered to pay Londsdale an amount of $1,999.02 in respect to Londsdale’s and Promet’s total alleged claim of $533,000.

The Supreme Court found that Londsdale and Promet were negligent, and breached the duty of care owed by them as process plant design engineers to OMM.

However, OMM was unsuccessful in proving its claim that Lonsdale and its director James Dindsdale Cribbes had engaged in misleading or deceptive conduct in breach of the Trade Practices Act 1974 (Cth) and the Fair Trading Act 1987 (WA).

The proceedings have been adjourned to a further hearing in respect to the legal costs of the action, and the quantum of interest payable to OMM on the damages it has been awarded.

OMM will now take steps to enforce the judgment against Londsdale and Promet.

Send this to a friend