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Cameco Wins $40.3 Million In Force Majeure Dispute

Kitco News

Cameco announced today that an arbitration panel awarded the company $40.3 million in a dispute with Tokyo Electric Power Company Holdings that terminated a supply agreement after declaring force majeure.

Government regulations after the Fukushima accident forced the company's nuclear generating plants to close for 18 months.

Cameco disputed the contract break. It sought $700 million in damages from the arbitration tribunal.

"We are pleased that the tribunal agreed that TEPCO was not entitled to terminate the supply agreement, but we are disappointed with the amount of damages awarded," said Cameco President and CEO Tim Gitzel. "However, remember we had already removed this contract from our financial outlook. So, overall the result is positive for us."

The judgment cannot be appealed.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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