A tribunal of international arbitrators has ordered Japan’s Tokyo Electric Power Company (Tepco) to pay Canadian miner Cameco $40.3-million in damages, following the termination of a multibillion-dollar supply agreement in 2017.
Saskatoon, Saskatchewan-based Cameco’s claim was for damages of $700-million and president and CEO Tim Gitzel said at the weekend that the company was disappointed with the amount of damages awarded.
The damages award was based on the tribunal’s interpretation of losses under the supply agreement, which Tepco cancelled in 2017, alleging force majeure.
Gitzel said, however, that Cameco was pleased that the tribunal agreed that Tepco was not entitled to terminate the supply agreement. He also reminded shareholders and the investment community that the company had already removed the contract from its financial outlook.
“So, overall the result is positive for us.”
At the time of cancelling its contract, Tepco said an event of force majeure had occurred because it had been unable to operate its nuclear generating plants, owing to government regulations arising from the Fukushima nuclear accident in March 2011.
The supply agreement does not allow for an appeal of the tribunal’s decision.