International court orders bankrupt MMX to pay $7 million to Outotec
An international Court of Arbitration has ruled that MMX Sudeste Mineracao SA, a subsidiary of the mining unit belonging to former Brazilian billionaire Eike Batista, will have to pay Finnish Outotec a compensation of 6.4 million euros ($7 million).
Outotec and the Brazilian miner began in December 2013 separate arbitration processes against each other over the delivery of 17 filters, the mining technology supplier firm said in a statement.
The ruling concluded that MMX terminated the supply agreement unlawfully, but also that Outotec should have stopped working with MMX as soon as the contract ceased to avoid any extra costs.
Shares Outotec have fallen 48% in the past six months as demand for its mining equipment and technology has decreased amid a global drop in commodity prices.
Earlier this month the company said it had completed employee negotiations and would begin cutting 150 jobs at almost all of its Finnish locations.