The head contractor on the project, South Korea's Samsung C&T,...

The head contractor on the project, South Korea's Samsung C&T, has made numerous court appearances during the past year due to protracted disputes with many of its subcontractors.

It was in court again on Tuesday, this time with Roy Hill. Roy Hill declined to comment on the dispute.

Samsung did not attend the proceedings. A directions hearing is expected next week.

According to March court documents, Samsung faces the prospect of handing over liquidated damages of $55.9 million a month, applied for each day the first shipment was delayed after October 30.

It came as Samsung settled a payment dispute with subcontractor NRW Holdings.

The two parties were at loggerheads for about 12 months over the necessary payments, scope and completion of NRW's $620 million rail earthworks contract at Roy Hill.

On Tuesday, NRW announced the two parties had reached a settlement, with Samsung to pay NRW $30 million.

Samsung had made progress payments until February, totalling $560 million. The settlement brings the amount paid to $590 million, $30 million short of its $620 million value.

However, it is understood NRW also submitted claims to NRW for extra work and increased scope under the contract for about $55 million, which could mean the contractor has been left about $85 million in the red.

NRW chief executive Jules Pemberton said in a statement the settlement allowed NRW to "rule a line under the issue".

NRW said the final settlement prevented any further claims, withdrew all litigation between the two parties in both Western Australia and the Singapore Arbitration Centre and granted "practical completion" of the contract.

In its full-year results in August, NRW recognised the contract as a loss, noting it was unlikely contract costs would be recovered. NRW said on Tuesday the settlement was "broadly in line" with its accounting position.

The contractor warned in its results that if the matter were not settled by the end of March, it would have to seek additional funding or delay its June debt repayments. An NRW spokesman said it had no need for a capital raising following the settlement.

"[The settlement] provides the company with improved financial capability and enables management to focus fully on successful delivery of our current projects and on securing new work," Mr Pemberton said.

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