Griffin Coal has gone to the Supreme Court to stop another attempt by the Bluewaters power station to seize control of the loss-making coal producer following supply disruptions.
Griffin is seeking an injunction to halt Bluewaters enforcing a notice of default and appointing a controller under the terms of their coal supply contracts, effectively assuming management of the group.
This move follows Griffin declaring force majeure this year after sometimes being unable to provide the volumes of promised coal because of industrial disruption or labour shortages.
Griffin is questioning the validity of the application in a Supreme Court hearing on Wednesday. A writ filed with its application says the company continues to provide coal to Bluewaters.
In a statement, Bluewaters said Griffin has defaulted on its contractual obligations because of its “continuing inability to deliver coal in the quantities set under the supply agreements”.
“The rationale of the controller appointment is to enable additional capability and funding to reinstate full coal supply to Griffin’s customers from its Ewington mining operations in Collie,” Bluewaters said.
“The controller will work closely with Griffin employees and contractors to return operations to a safe, stable, productive mine.”
More to come.