Falconbridge Ltd. has discounted a press report that a settlement has been reached in the company’s dispute with the government of the Dominican Republic, over an export duty imposed by that government on the ferronickel output of Falconbridge subsidiary Falconbridge Dominicana C. por A., (Falcondo).
A company spokesman told The Northern Miner, at press time, that no agreement had been reached as yet. He emphasized however, that negotiations are continuing between company and government officials.
In its just-released 1987 annual report, parent Falconbridge comments in notes to the company’s consolidated financial statements that “management believes if such negotiations are not resolved on a satisfactory basis, the continued operations of Falcondo may be materially adversely affected.”
The report also reveals that in 1987, the Dominican subsidiary had earnings of $13.4 million(US), to give it its first profitable year since 1979.
Falcondo remains in production while negotiations continue. The Falconbridge spokesman said the company last week had made a further shipment of ferronickel to its customers, the fourth such shipment this year.
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