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 mining blog has shed light on a little-discussed but potentially significant factor in Callinan Royalties' lawsuit against Hudbay. As The Reminder has reported, the Vancouver-based Callinan is suing Hudbay for allegedly failing to share in full profits from its flagship 777 mine. 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 25 cents for every tonne of ore milled from the mines. Complicating matters, a blog on The Mining Newsletter website notes, is the fact that Callinan owns the 777 Deeps property, better known as the War Baby deposit. As TMN describes it, War Baby 'sits directly in the middle' of 777 and therefore 'has to be acquired by Hudbay as the source of mill feed most convenient to and in the way of Hudbay's operations in the region.' None of this is considered a secret by many who follow Flin Flon's highly cyclical mining industry. Regardless, it adds a whole other element to a dispute between two companies that has dragged on for well over six years _ with no end in sight. And it raises questions that are certainly worth thinking about. If Callinan, deep-pocketed as far as companies of its nature go, cannot settle the lawsuit to its satisfaction, will it use War Baby as a super-sized bargaining chip? See 'Who' on pg. Continued from pg. Will Hudbay, which strenuously denies Callinan's allegations of wrongdoing, be so willing to again enter into a property transaction with its accuser? Readers have asked me for my personal thoughts on the Callinan-Hudbay lawsuit. Who, they wonder, is guilty and who is innocent? All I can say is that, as with so many news stories, there are arguments, counter-arguments, a few hard facts and a whole lot of stuff being said only behind closed doors. It will be difficult for any of us to form a considered opinion on this case until the judge's ruling comes down. Even then we may see appeals and continued legal jockeying for months or years to come. War Baby, and any potential sale of this property to Hudbay, may or may not be impacted by what will happen in the courtroom. Only time will tell for sure.
