01/12/2005 - 11:29

Minara resolves $48m conflict with Glencore

01/12/2005 - 11:29

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Minara Resources Ltd has announced the resolution of its long-running dispute with Swiss-based project funder Glencore, ending claims totalling about $48 million.

Minara resolves $48m conflict with Glencore

Minara Resources Ltd has announced the resolution of its long-running dispute with Swiss-based project funder Glencore, ending claims totalling about $48 million.

The issue stems back to the days of construction of the Murrin Murrin Nickel Cobalt plant in south eastern Western Australia, when the then named Anaconda Nickel Ltd was run by Andrew Forrest.

 

Below is the announcement and managing director Peter Johnston's comment on the ASX corporatefile:

Glencore Dispute Resolution

Minara has reached a commercial resolution with Glencore in respect of alleged breaches by Minara and related bodies corporate of joint venture agreements arising out of the construction phase of the Murrin Murrin Nickel Cobalt plant.

The details of these disputes have been disclosed as a contingent liability in Minara's accounts since 1998.

Under the settlement, Glencore has discontinued its claims, the value of which are currently estimated to be US$36 million (inclusive of interest) against the Minara Companies.

Minara has agreed to extend the Area which is subject to the Murrin Murrin Joint Venture (Minara 60%) from a radius of 60km to 200km.

 

Minara Managing Director Peter Johnston said that he was pleased to see a mutually satisfactory resolution of a long running dispute.

"This was a dispute originating 7-8 years ago during the initial phases of the Joint Venture," Mr Johnston said.

"It has been disclosed as a contingent liability in our accounts ever since.

"After a long commercial negotiation I am pleased to have reached a mutually satisfactory settlement with our joint venture partners.

"This is a further indication of the strong support we enjoy with our joint venture partner.

"This is the last of the legacy issues which have occupied so much time in recent years."

 

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