BHP subcontractor not paying bills
Diamond mine dragged into court over tangle of liens

by Jennifer Pritchett
Northern News Services

NNSL (July 18/97) - BHP Diamonds Inc. found itself in court this week after a subcontractor at Koala Camp failed to pay its bills.

Metl-Span Corp. took out a lien against BHP, claiming a British Columbia company, Dudley Kill and Sons Ltd., owed the Texas-based supplier more than $80,000.

The Supreme Court of the NWT removed the lien Wednesday in court pending the payment of a bond put up by Dominion Bridge Inc., the main contractor for BHP Diamonds.

Dominion Bridge Inc. contracts out work to Dumbarton Construction, which in turn, contracted out to Dudley Kill, which receives supplies from Melt-Span.

Metl-Span Corp. took the action against Dudley Kill. because of unpaid bills.

"Now it's up to Metl-Span to prove its claim -- its lien," said Dominion Bridge's lawyer, Adrian Wright.

Wright said the lien was an action taken by the supplier after it didn't receive payment, and the Miner's Lien Act allows the company to put a lien against the land title.

"It doesn't really have anything to do with BHP," he said. "They just want clear title on their land."

Elizabeth Hellinga, counsel for BHP Diamonds, said that it's important for the company to remove all liens against their property in order to protect their leases.

"BHP owns the property where the materials were used -- that's why there's a lien against it," she said. "The lien limits what BHP can do with their own property."

This lien is one of three placed against BHP's Koala Camp relating to problems with payment from Dudley Kill Ltd. to Metl-Span Corp.

Hellinga estimated that the company owes about $135,000 in unpaid bills to their supplier.