Key points
- A judge dismissed Chatham Rock Phosphate’s application for judicial review of costs charged by the Environmental Protection Authority.
- High Court proceedings in which the EPA is seeking payment of those costs will now resume.
- Chatham Rock says it will likely be required to pay the costs invoiced by the EPA.
- The company says its conservative, worst-case financial reporting limits the balance-sheet impact, though the decision will hurt its cash flow.
CHATHAM ADVISES OUTCOME OF JUDICIAL REVIEW
The outcome of a judicial review requested by Chatham Rock Phosphate Ltd. in respect to certain costs charged by the Environmental Protection Authority (EPA) has been released.
The judge has dismissed the company’s application for the review, and, as a result, the High Court proceedings where the EPA is seeking payment of these costs will now resume with the likely outcome that Chatham Rock will be required to pay the costs invoiced by the EPA.
The company’s financial results for the last two years have been prepared on a conservative basis, assuming a worst-case scenario, and, therefore, the decision will have a limited effect on Chatham Rock’s formal balance sheet position. However, the decision does have a negative impact on the company’s cash flow position, which Chatham Rock will be taking steps to remedy.
Chatham Rock will be reviewing the judgment in detail over the next few days and taking legal advice on appropriate next steps.
