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
June 24, 2004