Labrador Nickel Royalty LP Files Claim Vs Vale Inco
DOW JONES NEWSWIRES
Labrador Nickel Royalty Limited Partnership is suing Vale Inco Ltd. for
allegedly underreporting the net smelter return on the sale of nickel
concentrates from the Voisey's Bay mine in Labrador.
That NSR is the basis for payment of a 3% royalty to the limited partnership,
which is 90% owned by International Royalty Corp. (IRC.T) and 10% owned by
Altius Minerals Corp. (ALS.T).
Vale Inco, which is owned by Brazil's Vale S.A. (VALE), owns the the big
Voisey's Bay nickel-copper-cobalt mine.
International Royalty said the limited partnership has filed its claim in the
Supreme Court of Newfoundland and Labrador against Vale Inco, asserting that the
NSR is being miscalculated. The claim requests specific damages for underpayment
of past royalties and an order for correct calculation of future payments.
If successful, International Royalty estimates that its share of the royalty
underpayments up to June 30 would exceed $26 million, before the deduction of
royalty taxes. The partnership's total claim is $29 million.
-By Carolyn King, Dow Jones Newswires; 416-306-2100; carolyn.m.king@
dowjones.com
(END) Dow Jones Newswires
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