Assize between World Wide Minerals (Canada) and NAC Kazatomprom (Kazakhstan) decided in favor of the last

09.08.02 00:00
/IRBIS, August 09, 02/ - Today NAC Kazatomprom (Almaty), whose bonds are traded under official securities list of "A" category, distributed official press release about finishing of the assize between Canadian World Wide Minerals and NAC Kazatomprom in Kazakhstan company' favor. According to the company, yesterday, August 08, 2002 the Court of Appeal of the USA Columbia jurisdiction made a final judgment on rejection of an action, claimed by company World Wide Minerals against National atomic company Kazatomprom. NAC Kazatomprom initiated legal investigation in the last USA degree of jurisdiction with an aim of quick ending of this long assize. The decision on rejection of an action against NAC Kazatomprom is the final and of no subject of appeal. It was marked that during this suit NAC Kazatomprom represented not only its concern but of Republic of Kazakhstan and State committee of Kazakhstan on state property management. The history of conflict, which was ended yesterday in the Court of Appeal of the USA originated in 1996, when Kazakhstan and World Wide Minerals (WWM) made an agreement on management, according to which the Canadian company took management of North uranium-mining complex and Tselinniy (Virgin) mining plant (TMP). In 1997 World Wide appealed to Kazakhstan Government for license on sale of uranium to the USA and received rejection, due to the fact that exclusive rights were given to American company Nukem Inc. As a result of impossibility to receive export license, the company stopped the production, pleading to impossibility of realization of mined uranium. Kazakhstan was forced to take management of the complex and annulled the agreement due to non-fulfillment of taken responsibilities by WWM and hard financial and economic situation of the TMP. By resolution of the Kazakhstan Government #213 dated July 30, 1997 the right of operating management of State holding company Tslinniy mining plant was given to NAC Kazatomprom CJSC. On May 13, 1998 WWM and its branches filed an action into regional Court of the USA against Republic of Kazakhstan, State committee of Kazakhstan on state property and NAC Kazatomprom, claiming mainly on illegal refusal of license issue on uranium export to the USA and later illegal nationalization of WWM property in Kazakhstan. The amount of an action totaled $29m. Regional court of the USA cancelled an action against Kazakhstan and Kazakhstan enterprises in compliance with Doctrine that banns "consideration of claims, when solving of the legal dispute is based on legality or illegality of the official action, made by the foreign sovereign state on its own territory". As it was noted by the Court, the decision on giving or not of export license and nationalize property is the sovereign action of Kazakhstan, based on internal laws and decree of republic. After that Canadians triply appealed to the Court of the USA with claims. Moreover, sums of the action grew to $1bn. However all actions were rejected according to the Doctrine. On November 27, 2001 NAC Kazatomprom appealed with petition to the Court of Appeal of the USA on approving in the fast order of rejection of WWM action. On August 08, 2002 the Court of Appeal of the USA made a final judgment on ending of assize in favor of Kazakhstan and NAC Kazatomprom. [2002-08-09]