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.
Hudbay remains optimistic amid the resumption of a lawsuit alleging a contractual breach on its part. Callinan Royalties Corp. recently announced that it will recommence litigation against Hudbay, which it accuses of not sharing in full profits from two local mines. 'We will defend the litigation and expect a positive outcome for Hudbay,' said John Vincic, Hudbay's vice-president of investor relations and corporate communications. 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. Callinan said it does not intend to release data from the 'incomplete audit work conducted' or report any developments with respect to the litigation unless it is required or chooses to do so. Vincic said Hudbay considers it 'unfortunate that Callinan chose to pursue a costly and time-consuming litigation process rather than share the full results of their audit with a view to resolving any issues.' 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.
