December 10, 2002
World Wide And Nuclear Fuel Resources Take Further Steps In US$1.0 Billion
Lawsuit
WASHINGTON, DISTRICT OF COLUMBIA--World Wide Minerals Ltd. and its subsidiary,
Nuclear Fuel Resources Corporation, announced that recently they had taken
significant new steps in their US$1.0 billion lawsuit against Kazakhstan and
RWE Nukem, Inc. (formerly Nukem, Inc.).
In August, 2002, the US Federal Court of Appeals in Washington, D.C. issued a
decision that a trial judge in the US District Court for DC had erred when the
judge dismissed the Company's civil conspiracy and RICO claims against Nukem
for lack of personal jurisdiction. The Court of Appeals found that the
dismissal had been based on the judge's misunderstanding of certain facts. The
Court of Appeals remanded the claims against Nukem to the trial judge for
further deliberation. Nukem is a wholly-owned US subsidiary of RWE AG, one of
the largest companies in Germany. RWE operates nuclear and fossil fuel powered
electric power generation stations and distribution lines and has waterworks
operations in various other countries, including the United States, the United
Kingdom, France and Spain. RWE Nukem, Inc. is engaged in the sale of nuclear
fuel in the US on behalf of the RWE group.
Following the decision of the Court of Appeals, the Company filed a Motion with
the Federal District Court in DC requesting that the Company's action be
resolved by mediation under the rules of the District Court before the Company
proceeds with the action against Nukem. The defendant responded by merely
renewing its earlier Motion for dismissal of the action based on technical
arguments; to date, Nukem has not filed a statement of defence. The District
Court has not yet responded to either of these Motions.
In its August 2002 decision, the Court of Appeals also affirmed the trial
judge's dismissal of the Company's claims against Kazakhstan and Kazatomprom,
albeit on somewhat different grounds than the trial judge. The Court disagreed
with the trial judge's opinion that Kazakhstan had fully waived its sovereign
immunity. Instead, the Court agreed with the judge that the case hinged on
"acts of state" (namely, refusal to issue export licenses, and confiscation of
assets without compensation), which the Court determined were acts with which
it would not interfere.
The Company has filed a Petition to the United States Supreme Court requesting
that Court to review the dismissal of the case against Kazakhstan and
Kazatomprom. The Petition is based on the failure of the Court of Appeals to
give effect to the express waiver of sovereign immunity by Kazakhstan contained
in the agreements with the Company and the failure of the Court of Appeals to
apply the commercial activity exception to the act of state doctrine. No
response to this Petition is expected from the Supreme Court until sometime in
2003.
The Company also is considering further steps to be taken to collect the
sovereign debt owing to it by Kazakhstan arising out of a loan made in 1996
-1997. This loan, with accrued interest and collection costs, now amounts to
over US$30 million. These steps may include arbitration pursuant to the
agreements with Kazakhstan.
Paul Carroll, President and CEO of World Wide, reiterated that "what happened
to us, with our good faith investment of millions of dollars and with our
operations in Kazakhstan, should be a warning to all international investors.
The effect of this is that, if the Court decision is allowed to stand, a
sovereign state can refuse to repay its debts and can cancel commercial
contracts, without paying compensation. This would be a scandalous result. We
certainly hope that other international investors looking at Kazakhstan, such
as major companies in the petroleum sector that already have invested billions
of dollars in that country, will look long and hard at this result before
making further investments in emerging countries such as Kazakhstan."
The Company's shareholders are advised that the Company recently has filed its
interim financial statements for the third quarter of 2002 ended September 30,
2002. The statements can be accessed on-line under the Company's information at
www. sedar.com. |
