Qingdao Port International Co. Ltd. voiced its intention to dispute a demand from a unit of Citic Resources Holding Ltd. asking for that delivery of copper and alumina or pay $108 million in compensation.
Qingdao Port International disclosed that on July 28, 2014, Dagang Branch of Qingdao Port Group (QDP Dagang) received a writ of summons and a notice of responses to action dated July 25, 2014, and a complaint dated June 29, 2014 served by Qingdao Maritime Court of the People’s Republic of China.
CITIC Australia Commodity Trading Pty. Ltd., as plaintiff, claims that it suffered a severe loss from its unavailability to dispose 223,270 tonnes of sandy metallurgical grade aluminium and 5,003.778 tonnes of electrolytic copper as result of the QDP Relevant Parties’ refusal to deliver the cargo to it.
Therefore, CITIC requests the court to confirm the legitimate ownership of CITIC over the subject cargo which is currently stored in the bonded warehouses owned by QDP Dagang and Dagang Branch in Qingdao; and order the QDP to deliver the cargo to CITIC, and if failing, to compensate CITIC for the loss of goods of USD 108,078,797.50
Given that there is no contractual relationship between the QDP and CITIC, the QDP’s initial assessment is that the legal proceeding is without merit and that it will vigorously contest the allegations.
According to the QDP, the cargo was stored at QDP Dagang under the name of Qingdao Hongtu Logistic Co., Limited, a third party cargo shipment agency.
The subject cargo has been detained by the relevant public security authority due to the suspected involvement in criminal activities and Qingdao Hongtu is under a fraud investigation by the Public Security Authority as well.
The court will hold the first hearing regarding the legal proceeding on September 9, 2014.
Press Release; July 30, 2014