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equire monitoring of wastewater and potential clean-up
to be performed at one of the French subsidiary’s plant
sites in Chauny. Although the extent of these issues is not
yet known, there is a possibility that the Company could
incur remediation costs approximating $1,000. At a US
subsidiary, a provision has been recorded for the lowlevel
radioactive slag pile (see note 27) which assumes
that the Company will be able to remediate the pile using
a long-term control license. In 2009, the governing party
responsible for this site changed and the new governing
party determined that this remediation is not satisfactory
and is requesting the Company to remediate using a second
alternative. The second alternative is an offsite disposal
alternative which could potentially cost up to $70,000. The
Company challenged this decision and the court agreed
with the Company that the new governing party did not have
the ability to change the plan which has previous approval.
Although the second alternative is still possible, it is a more
remote possibility given the ruling by the court. In 2010,
a US subsidiary was named as a potentially responsible
party in the Macalloy Superfund site in South Carolina. The
total claim for the site is $1,200 but it is unclear how many
potentially responsible parties (“PRPs”) will be identified.
Currently, the Company is aware of three PRPs but
additional PRPs are expected to be identified. Based on the
claim and the known number of viable PRPs, the maximum
exposure for this case is $400. The Company has not
recorded a liability at December 31, 2010 due to the limited
information provided by the environmental authorities and
several mitigating factors identified in the case.
Litigation
In addition to the environmental matters, which are
discussed above and in note 27, the Company and its
subsidiaries defend, from time to time, various claims and
legal actions arising in the normal course of business.
Management believes, based on the advice of counsel,
that the outcome of such matters will not have a material
adverse effect on the Company’s consolidated financial
position, results of operations or cash flows. There can be
no assurance, however, that existing or future litigation
will not result in an adverse judgment against the
Company that could have a material adverse effect on the
future results of operations or cash flows.
134 Notes to Consolidated Financial Statements
Contingencies of associates and joint ventures
Timminco and certain of its directors and officers, as well
as certain third parties, have been named as defendants
in a potential class action lawsuit filed in the Ontario
Superior Court of Justice on May 14, 2009. This lawsuit
was commenced by the plaintiff Ravinder Kumar Sharma
on behalf of shareholders who acquired Timminco’s
common shares between March 17, 2008 and November 11,
2008 and claims damages exceeding $540 million. The
plaintiff alleges that Timminco and others made certain
misrepresentations about the Company’s solar grade
silicon production process.
There has been no provision made for these matters in
Timminco’s accounts as of December 31, 2010. AMG
and Timminco each have insurance policies which
will provide for reimbursement of costs and expenses
incurred in connection with the lawsuit, including legal
and professional fees, as well as damages awarded,
if any, subject to certain policy limits and deductibles.
Timminco intends to vigorously defend these allegations
and the plaintiff’s attempt to get court approval to
proceed. However, no assurance can be given with respect
to the ultimate outcome of the proceedings, and the
amount of any damages awarded in such lawsuits could
be substantial.
Silmag DA is currently in the process of determining
whether it will owe any value added tax in Norway. The
Company received a start-up company exemption, but the
exemption may expire if the venture fails. This is currently
still under investigation, but the Company’s share of this
potential liability could approximate $2,016.
36. Related parties
Transactions with key management personnel
Key management personnel compensation
As at December 31, 2010 and 2009, Dr. Schimmelbusch
is the Chief Executive Officer for the Company, and in his
position receives salary, benefits and perquisites from
the Company.
Mr. Spector left the employ of the Company on
September 30, 2009.
In addition to their salaries, the Company also provides
non-cash benefits to directors and executive officers, and
contributes to a post-employment defined benefit plan on
their behalf.