Korean electric companies preparing Aussie fake-coal lawsuit

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The action would escalate the fallout for lab giant ALS from a scandal involving the manipulation of testing results of Australian coal marked for export.

Now S Korean power utilities confirm planning litigation against ALS.South Korean power companies say they are preparing to sue Australian laboratory giant ALS over claims of fake-coal testing, and are also considering action against miners.The Australian Financial ReviewPower companies in South Korea say they are considering an Australian lawsuit over manipulation of coal-testing results.

Brisbane-based ALS is a $6 billion company that tests items from water to gold. Its coal certification arm suffered a black eye after it admitted in 2020 that between 45 per cent and 50 per cent of results on certificates had been “manually amended without justification” for 13 years. ALS reformed the division and received market praise for coming clean. The Australian Securities and Investments Commission decided against taking action against the company.last week that subsidiaries of state-operated power utility Korea Electric Power Corp were rumoured to be examining legal claims against the Australian lab operator.

Komipo is one such subsidiary, and confirmed that it and other companies were looking to sue ALS in Australia. “Disputes with mining companies are carried out in Korea according to the contract, but there is no explicit provision for this case,” Komipo said.The laboratory giant told theit had “not received any notice of the commencement of legal proceedings against ALS with respect to coal certificates”.

 

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