JOHANNESBURG (miningweekly.com) – The Federal Supreme Court of Switzerland has ordered South African fluorspar company Sallies to pay the initial fine of $1,2-million to Honeywell International, as imposed by the International Chamber of Commerce International Court of Arbitration.

Sallies and Honeywell have been embroiled in a contract struggle since 2006.

Honeywell had claimed more than $6,8-million from Sallies and its subsidiary, Witkop, for contract breach. The fluorspar miner had, in turn, counterclaimed more than $3-million from Honeywell for payments relating to delivered materials.

In April, the Arbitral Tribunal ordered Sallies and Witkop to pay to Honeywell an amount totaling $1,2-million, as well as a 5% interest a year, since January 2006, until full payment.

The counterclaim of $3-million by Sallies and Witkop be dismissed and that each party was to bear its own legal and other costs.

The amount awarded to Honeywell is 18% of the amount originally claimed.       

However, in May, Sallies and Witkop requested the Federal Supreme Court of Switzerland to set aside the penalty, which would have the effect that the case would be sent back to the Arbitral Tribunal for assessment, and to instruct the Arbitral Tribunal to reject Honeywell’s claim and approve the counterclaim of Sallies and Witkop.

Sallies stated on Thursday that as a result of the ruling by the Federal Supreme Court of Switzerland, the company has now accounted for its own expense in relation to the proceedings as these were incurred.

Full provision has been made for the $1,2-million penalty and the interest thereon until the end of June 2009, which amounts to $214 176 and amounts to $245 527 as at the end of December 2009.

The company noted that South African regulatory and procedural requirements must be met before payment is made.

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