(Updates with statement from Vale Inco spokesman in final
paragraph.)
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.
(ROY) 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.
Vale Inco's manager of corporate affairs in Newfoundland and
Labrador, Bob Carter, said Vale Inco doesn't comment on matters
before the courts.
-By Carolyn King, Dow Jones Newswires; 416-306-2100;
carolyn.m.king@dowjones.com