RE:RE:Ron, Henry, Alex, Dibah and all distinguished shareholders Aecon has faced disputes with Rio Tinto over the Kemano Generating Station T2 Tunnel project in BC. This $364 million contract involved constructing a second tunnel to provide backup water supply for hydroelectric power at Rio Tinto’s aluminum facility. The joint venture, in which Aecon holds a 40% stake, received a termination notice from Rio Tinto.
The dispute began as Rio Tinto alleged deficiencies after the works were apparently mostly completed on the tunnel and the legal clash arose when Rio Tinto refused to release security payments and terminated the contract.
The conflict escalated in 2020 when Aecon and its partner argued the termination was invalid and filed a lien against Rio Tinto, asserting non-payment for completed work and unresolved contractual issues.
Rio Tinto unsuccessfully tried to invalidate the lien.
https://www.cwilson.com/procedure-policy-and-practice-continued-commentary-on-the-bc-builders-lien-act
In conclusion, Aecon disputes these claims, maintaining that the project was on track and that Rio Tinto’s actions were unjustified. Aecon contends that Rio Tinto’s reasons for termination did not align with the contractual agreements.