Canada's Nordion says AECL puts arbitration costs at $46 million

Tue Dec 4, 2012 6:24pm EST

Dec 4 (Reuters) - State-owned Atomic Energy of Canada Ltd (AECL) submitted before a tribunal that an arbitration with Nordion Inc over a canceled reactor project in Ontario cost it $46 million, the medical isotope provider said.

Nordion, whose claim for damages from AECL was rejected by the tribunal in September, said it may be responsible for a portion of AECL's costs.

Canada had mothballed the reactors, intended to supply Nordion with raw materials for its isotopes, on safety concerns before the construction was finished.

The closure caused a worldwide shortage of molybdenum-99, used in medical imaging, prompting many of Nordion's customers to look at other suppliers.

Nordion claimed damages from AECL but the arbitration panel rejected the claim.

The company said it was assessing the legal merits and financial implications of AECL's costs submissions and expects to file a response with the tribunal early next year.

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.