The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
A lawsuit alleging a contractual breach on the part of Hudbay will resume after the company was unable to provide certain data for a financial audit. Callinan Royalties Corp. has announced that it will recommence litigation against Hudbay, which it accuses of not sharing in full profits from two local mines. Two years ago, Callinan agreed to suspend the lawsuit while it conducted an audit of Hudbay's books. Hudbay agreed to supply all available documents reasonably requested. But this past February, Callinan reported that the audit _ which involved financial records from 1993, 2003, 2004, 2007 and 2011 _ could not be completed as planned. Audit work 'had been protracted' since 'much of the source material' from the earlier years to be examined 'is not available from Hudbay,' Callinan said in a news release. 'Therefore, the audit work conducted is incomplete and inconclusive in nature,' the company said. On Aug. 26 the Vancouver-based Callinan issued the release to announce that it had given Hudbay the required 30-day notice of its intention to resume the lawsuit. Options This came after Callinan's board of directors considered other options, including additional audit work and discussions to resolve outstanding issues. 'The Board of Directors of Callinan has elected to recommence litigation against Hudbay,' read the release, 'and (Callinan) does not intend to disclose information from the incomplete audit work conducted or report any developments with respect to the litigation unless required by regulation or law and until its Board of Directors otherwise deems that disclosure is appropriate.' Hudbay has denied the basis of the lawsuit, saying it has complied with its profit-sharing contract with Callinan and has 'a good defence to the claim.' Under a deal signed in 1988, Callinan is entitled to 6.66 per cent of profits from the now-defunct Callinan mine and the still-operational 777 mine. Hudbay must also pay Callinan Royalties Corp. 25 cents for every tonne of ore milled from the mines. In a lawsuit launched in March 2007, Callinan alleged that HudBay breached this contract by not paying out its fair share. HudBay began paying Callinan in November 2007. In 2012 the deal netted Callinan $20 million. Callinan has not put a financial figure, at least publicly, to the damages it is seeking from Hudbay.
