UPDATE 1-Baja Mining faces lawsuit on cost overruns

June 18 Mon Jun 18, 2012 3:36pm EDT

June 18 (Reuters) - Canadian miner Baja Mining Corp said Louis Dreyfus Commodities Metals Suisse S.A. (Dreyfus) filed a lawsuit in the Supreme Court of British Columbia against the company regarding cost overruns at the company's Mexico project.

Privately held Dreyfus - Baja's second-largest shareholder, according to Thomson Reuters data - sought an independent investigation into the cost overruns at the Boleo copper-cobalt-zinc project.

France-based Dreyfus also sought the removal of some officers and directors.

Baja said in April it will not be able to proceed beyond mid-June without a cash injection.

Spending at the Boleo project, which is 70 percent-owned by Baja and rest by a Korean consortium, is expected to be $246 million more than the $1.14 billion estimated in 2010, Baja said.

On Monday, Baja said it plans to defend Dreyfus' action.

Its shares were up 27 percent at 19 Canadian cents on the Toronto Stock Exchange on Monday.