BlueScope Steel Ltd. (BSL.AU), Australia's largest steel maker, said Thursday that miner Xstrata PLC (XTA.LN) has lodged in court a A$120 million claim alleging BlueScope failed to honor contracts.

The Swiss-based miner filed a claim in the Supreme Court of New South Wales state, alleging Melbourne-based BlueScope failed to take delivery of coal agreed to in the contracts.

A BlueScope spokesman said that the company didn't enter into the contracts with Xstrata as claimed in its legal summons and doesn't consider it has any liability to the claims.

"BlueScope will defend the claims," the spokesman said.

"In light of the legal proceedings, it is not appropriate for BlueScope to comment further," he said.

A Xstrata spokesman confirmed that the company had lodged an application in the court and said that it expects a hearing later this month. He declined further comment.

-By Andrew Harrison, Dow Jones Newswires; 61-3-9292-2095; andrew.harrison@dowjones.com
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