Cement producer Holcim Philippines Inc. and port operator Seasia Nectar Port Services Inc. agreed to settle their conflict over the termination of an agreement in Bataan province.
Holcim said in a disclosure on the stock exchange Friday both parties signed an agreement to “amicably settle all disputes and terminate all pending litigation” related to the row.
Holcim said the Bataan Regional Trial Court approved the settlement agreement on July 14, which requires the parties to file a joint motion to withdraw with prejudice to all pending cases.
SNPSI filed a petition against Holcim in October 2018 to end its port services agreement. Holcim said the termination was “pursuant to its no-fault termination rights” under the agreement.
The Arbitral Tribunal in September 2020 ruled that Holcim validly terminated the port services agreement but said SNPSI was entitled to compensation as a result of the suspension of the memorandum of agreement.
It gave SNPSI the option to either receive P588.38-million worth of compensation from Holcim, which represents the minimum revenue it could have generated if the agreement were not suspended, or get a two-year extension of the MoA, which will result in a total remaining term of seven years and 10.5 months.
SNPSI started commercial operations in 2016 as a joint venture among Seasia Logistics Philippines Inc., Nectar Group Ltd. and Web Technologies Inc.
It operates a dry bulk terminal in Mariveles, Bataan which handles shipments of coal, clinker, silica sand, cement raw materials, steel, fertilizer and other dry bulk cargoes.
Global Ferronickel Holdings Inc., the country’s second-largest nickel ore producer, acquired a 60-percent stake in SNPSI in 2019 to support its planned rebar steel rolling plant in Mariveles.
The acquisition will also enable GFNI to diversify to other businesses.