December 4, 2012 / 11:25 PM / 5 years ago

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

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.

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