Anaconda Arbritation!!!!!

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    ANACONDA NICKEL LIMITED ASX: ANL
    10 SEPTEMBER 2002
    FLUOR DANIEL ARBITRATION DETERMINATION
    The Arbitrators of the dispute between Anaconda Operations Pty Ltd, on behalf of the
    participants in the Murrin Murrin Joint Venture, and Fluor Australia Pty Ltd. have today
    delivered their interim award covering the first phase of the arbitration.
    The Arbitrators awarded A$147.6 million to Anaconda Operations Pty Ltd in respect of its
    claims against Fluor Australia, and an amount of A$107.8 million to Fluor Australia in
    respect of its counterclaims against Anaconda Operations. The net amount awarded to
    Anaconda Operations on behalf of the Joint Venture participants and now payable by Fluor
    Australia is A$39.8 million. Anaconda’s subsidiary Murrin Murrin Holdings Pty Ltd (MMH) is
    entitled to 60% of this amount with the balance accruing to the other Joint Venture
    participant, Glenmurrin Pty Ltd.
    The interim award has determined firstly, Anaconda Operations’ claims against Fluor
    relating to defects in the screening and acid leach circuits where the majority of technical
    difficulties in the plant have been encountered, and secondly, Fluor’s counterclaim against
    Anaconda Operations relating to the bank guarantee drawn by Anaconda Operations and
    other contractual amounts previously withheld. The award also includes a sum of $5million
    in respect of Anaconda’s trade practices claim.
    Phase 2 of the arbitration process relating to the balance of Anaconda Operations’ claims
    totaling approximately A$160 million and covering other areas of the plant may continue for
    a further 12 months.
    As previously announced, Anaconda has a proposal before the secured creditors of MMH
    which includes a cash repayment at a discount to the face value of outstanding secured debt
    together with a substantial part of any amounts due under the Fluor Daniel arbitration.
    Under the terms of the proposal currently being ratified, the secured creditors will receive
    90% of the amount awarded to MMH. Accordingly, the secured creditors will receive A$21.5
    million and MMH will receive A$2.4 million from the interim award.
    Under the terms of the proposal with secured creditors Anaconda Operations will retain 25%
    of any amounts awarded in Phase 2 of the arbitration.
    ENDS
 
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