Finland-based mining technology supplier Outotec (Filters) will receive compensation of €6.4m from the Brazilian mining company MMX Sudeste Mineração (MMX) after completion of an arbitration process.
In December 2013, the companies began separate arbitration processes against each other at the International Court of Arbitration in a dispute regarding the delivery of 17 filters that are used for filtering pelletising feed slurries in iron ore processing.
Outotec's request was for declaration for MMX's illegal termination of agreement as well as receiving compensation due to the termination.
MMX requested to declare its right to terminate agreement and get back the paid money.
Now, the court concluded that MMX terminated the supply agreement unlawfully.
It also ruled that Outotec should also have terminated working with MMX as soon as the contract ceased to avoid any extra costs.
Outotec said in a statement: "It further considered the localised filters to have a commercial value for Outotec, thus limiting the final amount to be awarded to Outotec."
In 2012, Outotec agreed with MMX for the supply of 17 Outotec Larox CC 144 capillary action disc filters.
The companies did not disclose the value of the contract.