South Korean power companies are gearing up to sue an Australian lab over alleged fake coal tests.

Legal action against Australian miners is also being considered in a looming case that involves manipulated test results for Australian coal meant for export, deceiving users about its quality for power generation.

Komipo (Korea Midland Power), a subsidiary of Korea Electric Power Corp (Kepco), has confirmed it is filing a lawsuit in Australia. 

It follows a scandal in which test results for Australian coal were manipulated to exaggerate its quality when used for power generation.

ALS, a $6 billion Brisbane-based company, faced scrutiny in 2020 for admitting to altering  up to 50 per cent of coal certificate results without justification over 13 years. 

They restructured the division, escaping legal action from ASIC.

However, some South Korean utilities stopped using ALS. Reports hinted at Kepco subsidiaries considering legal claims against ALS, with Komipo confirming participation.

Disputes with miners are typically resolved in Korea per contracts, but none cover this situation.

There is no word yet on the exact damages sought, and ALS claims it has not received formal notice of the lawsuit.

Terracom, accused of pressuring ALS to alter test results, is defending a separate lawsuit from ASIC. Terracom denies this.

Komipo is exploring litigation against Terracom and other miners.

ASIC has noted the coal-testing allegations in a Senate inquiry into its effectiveness. They requested mining companies investigate independently; all reported no misconduct.

More details are accessible here.