June 26, 2014 / 1:48 PM / 5 years ago

UPDATE 1-China's Shanxi Coal sues Decheng Mining over missed payments

(adds context, Standard Chartered exposure)

BEIJING, June 26 (Reuters) - China’s Shanxi Coal International Energy Group said on Thursday it was suing Qingdao Decheng Mining and its parent company over missed payments.

Shanxi Coal said in a statement to the Shanghai Stock Exchange it was suing six clients over a total of more than $177 million in missed payments. Of that total, $120.4 million of overdue payments were in dollars, plus a further 352.5 million yuan ($56.77 million).

Shanxi Coal did not specify how much it was owed by Decheng Mining and its parent company, Dezheng Resources. No one at Decheng Mining was immediately available to comment.

Decheng Mining is currently being investigated by Chinese authorities over the alleged duplication of warehouse receipts at Qingdao port, China’s third-largest, to obtain multiple loans secured against a single cargo of metal. Decheng Mining has not commented on the investigation.

Standard Chartered said on Thursday it had about $250 million worth of total commodity-related exposure around Qingdao port.

Earlier this month, China’s CITIC Resources Holding Ltd said a court was unable to secure more than 100,000 tonnes of alumina it stored at the Qingdao port, estimated to be worth $43 million.

The Qingdao scandal has rattled global metals markets, reflecting market fears about business practices in China and worries that the probe could extend to other ports and prompt a crackdown on using metal as collateral for finance. (Reporting by Chen Aizhu and Meg Shen; editing by David Evans)

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