International Royalty files claim against Vale Inco for underpayment of royalty

 
The International Royalty Corporation (TSX:IRC) has filed a claim in the Supreme Court of Newfoundland & Labrador against Vale Inco Ltd.

The claim is related to the calculation of the net smelter return on the sale of nickel concentrates from Vale Inco Newfoundland and Labrador Ltd. Voisey’s Bay mine to Vale Inco. The IRC contends Vale Inco owes US$26 million, before the deduction of royalty taxes.

The net smelter return is the basis for payment of the three per cent royalty due to a partnership, which includes the International Royalty Corporation and subsidiaries of Vale Inco. It is 90 per cent owned by IRC. The claim requests specific damages for underpayment of past royalties and an order in respect of the correct calculation of future payments.