The judgment in the claim and counterclaim between South African fluorspar producer Sallies and its former US-based customer, Honeywell, is unlikely to be released to the parties before next month , Sallies CEO Tom Dale said yesterday.
The arbitral tribunal in Zurich completed hearings in December and Sallies originally expected to hear the ruling last month. But Dale said the latest information was that the tribunal would be considering its verdict until the end of this month and would take about 30 days to deliver it to the parties.
Honeywell was Sallies’ largest single customer under a five-year contract negotiated in 2000 at a fixed price, which rapidly proved onerous for Sallies when the rand strengthened and fluorspar prices soared.
Two years ago Sallies cancelled the contract over non-payment and the matter was taken to international arbitration, with the first hearings taking place in September 2007 and the final hearings late last year.
Sallies is claiming $3.8m plus interest and costs while Honeywell is claiming $4.5m from Sallies, plus interest and costs.
Whether the verdict is in favour of Sallies or against it, the outcome will be material.
Sallies made R168m in revenue for the year to June last year and a net loss of R39.2m. Its interim results for the period to December have not yet been published but the price of fluorspar, in line with other industrial minerals, has been hit by the global economic downturn.
Source: Business Day, South Africa
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