Samsung C&T is cutting down its mining business after itlost A$1 billion in its first mining project, 'sRoy Hill ironore project in Australia, the FinancialTimes reported July 11.
The South Korean company is also involved in lawsuits withcontractors seeking payment for unpaid work, including a A$65 million lawsuitfiled by Spanish company Duro Felguera for unpaid subcontracting work.
"The Roy Hill project was the company's first miningconstruction project, and there are no other mining projects that the companyis working on," the report cited Samsung C&T, which added that demandfor mine construction projects is low amid a challenging commodities market.
Analysts said Samsung C&T's appetite for mining projectswas eroded by its Roy Hill experience, according to the report.
Samsung C&T developed a processing plant, railroads andharbor infrastructure under the US$5.6 billion Roy Hill contract that it won in2013. The complex project ran over schedule and over budget, and theconstruction giant revealed in January that it would record a A$1 billion losson the contract.