Tuesday, March 29, 2011

Apache Sued by Alcoa (AA) for $158 Million

Citing alleged damage from the 2008 Varanus Island gas plant explosion off the coast of Western Australia, Alcoa (NYSE:AA) as sued Apache Energy and its partners for $158 million.

Partners also having a complaint filed against them by Alcoa are Kufpec and Tap Oil.

According to the complaint, "Apache Energy failed to exercise reasonable and adequate care and skill in operating, maintaining and/or repairing the 12-inch SGL (sales gas line) so as to ensure it would not corrode to the point where rupture of the pipeline occurred as it did in the incident."

If Alcoa ends up winning the case, others like mining giants BHP Billiton (NYSE:BHP), Newcrest and Wefarmers are expected to enter the legal fray.

Alcoa closed Monday at $17.24, gaining $0.15, or 0.88 percent.

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