POSCO Argentina Faces 14.5 Billion-Won Dispute Over Lithium Project

POSCO Argentina is entangled in a dispute over unpaid construction costs for its lithium project in Salta province, with local contractors claiming they haven't been fully compensated. The conflict arose after a contractor's lawyer, Nicolas Maggio, stated that the contractors were facing financial strain due to unpaid payments for completed facilities.

The damages claim currently stands at around 15 billion Argentine pesos (14.5 billion won, or $10.47 million). However, POSCO Argentina disputes the frozen amount, claiming it's only $350,000, and asserts no final court ruling has been issued. Maggio counters that about $2 million is subject to seizure, representing 20% to 30% of the total claims, potentially paving the way for additional lawsuits covering operating and financing costs.

The contractors allege that delays in POSCO's delivery of construction materials led to additional expenses, which could affect other contractors involved in the project, including those providing catering, maintenance, and camp services. Local concerns over employment and working conditions at the Sal de Oro project have also been raised, with the Salta provincial government potentially reviewing the situation.

Despite the dispute, POSCO's expansion in Argentina is proceeding, having invested more than $2.7 billion in the project. The resolution of this legal battle, including responsibility for additional costs and the actual unpaid construction fees, will significantly impact the company's timeline and expenses for its lithium expansion in Argentina.