SGF responds to Noranda’s lawsuit concerning Métallurgie Magnola
Montréal, September 11, 2003 - The Société générale de financement du Québec (SGF) is planning to mount a vigorous defence against the suit filed by Noranda Inc. concerning the closure of Métallurgie Magnola. Noranda is alleging that SGF is not fulfilling its financial commitments in regard to the cost of closing the Magnola plant.
SGF maintains that Noranda’s claim has no basis in the terms of the contractual agreements between the two.
SGF is a minority partner in Métallurgie Magnola (20%). Its partner in this project is Noranda (80%), a world leader in mining and metals, which had control over both the company and the global project that was not completed. Under its agreements with Noranda, the Société générale de financement du Québec believes that it is not required to pay the costs resulting from the plant closure which led to substantial financial losses, not only for Noranda but also for SGF.
SGF holds an interest in 147 companies and has more than 70 international partners. Its consolidated assets total $3.1 billion. (sgfqc.com)
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Director, Communications and Public Relations
Société générale de financement du Québec