AECL and Nordion reach settlement agreement
CHALK RIVER, ON, Aug. 20, 2013 /CNW/ - Atomic Energy of Canada Limited (AECL) reports that on Monday August 19, AECL and Nordion settled lengthy litigation and arbitration proceedings pertaining to the production and distribution of the medical isotope, molybdenum-99, to the global health community.
AECL and Nordion have arrived at a settlement that resolves all outstanding legal matters related to the parties' commercial relationship. Discussions concluded with the parties entering into a comprehensive settlement that includes, among other things, an agreement on new supply terms for AECL's continued provision of medical isotopes and waste management services to Nordion.
This settlement reflects AECL's planned exit from the production of the medical isotope molybdenum-99 using the company's National Research Universal (NRU) reactor in the 2016 timeframe and AECL's objective of creating commercial opportunity and reducing financial risk for Canadian taxpayers. The settlement aligns with the Government of Canada's international policy commitments among isotope producing nations. Starting in 2014, the percentage of revenue share that AECL receives from Nordion each year will increase throughout the term of the isotope supply. In addition, AECL has agreed, on commercial terms, to continue to provide Nordion with waste disposal services until October 31, 2026.
"The settlement terms are well aligned with AECL's domestic and international objectives and with our current restructuring process," stated Dr. Robert Walker, AECL's President & CEO. "We are pleased to have these disputes behind us, and we look forward to working with Nordion under our new commercial agreements."
Atomic Energy of Canada Limited (AECL) is Canada's premier nuclear science and technology organization. For 60 years, AECL has been a world leader in developing peaceful and innovative applications from nuclear technology through its expertise in physics, metallurgy, chemistry, biology and engineering.
Over 3,000 highly skilled employees deliver a range of nuclear services - ranging from research and development, design and engineering to specialized technology, waste management and decommissioning.
Today, AECL continues its commitment to ensure that Canadians and the world receive energy, health, environmental and economic benefits from nuclear science and technology with confidence that nuclear safety and security are assured.
More information on AECL can be found at www.aecl.ca.
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Atomic Energy of Canada Limited