Goldcorp loses bid for $50 mln NAFTA compensation

Reuters | Wed Jun 10, 2009

Goldcorp loses bid for $50 mln NAFTA compensation

(In U.S. dollars unless noted)

TORONTO, June 10 (Reuters) - A unit of Goldcorp (G.TO) has lost a bid to get $50 million in compensation after a U.S. trade tribunal rejected claims the gold miner’s operations were hampered by environmental regulations, according to the U.S. State Department.

The claim, filed by miner Glamis Gold before it was acquired by Goldcorp in 2006, argued actions taken by the State of California and the U.S. Department of the Interior made it "economically infeasible" for the company to build a planned mine. Glamis claimed the actions were in violation of the North American Free Trade Agreement (NAFTA).

The three-member NAFTA panel unanimously rejected the Glamis claim and ordered the company to pay two-thirds of the arbitration costs.

(Reporting by Roberta Rampton in Washington, writing by Cameron French; editing by Peter Galloway)

source: Reuters