Kajaani district court rejected Paljakka Gold's claim for compensation against UPM

Kajaani district court rejected today Paljakka Gold company's claim for compensation against UPM. The court also ordered Paljakka Gold to pay UPM's legal expenses.

Paljakka Gold had demanded UPM for a 31.5 million euro compensation for damages due to unjustified termination of agreement. In May 2002, UPM signed an agreement according to which Paljakka Gold was given a right to extract soil resources from an area owned by UPM in Puolanka in North-Eastern Finland. UPM terminated the agreement in November 2002 based on material breach of the agreement.


For more information please contact:
Mr Vesa Moisio, Director, Forestry and Land Management, tel. +358 400 252499


UPM
Corporate Communications
June 24, 2004