An Ottawa-based
company is taking
legal action to
force the federal
government to finish
building two nuclear
reactors or pay $1.6
billion in
compensation.
MDS Inc., a life sciences company, wants Atomic Energy of Canada Limited (AECL) and the government to complete construction of the Maple 1 and Maple 2 nuclear reactors to secure its future supply of isotopes, which are used in screening for cancer and heart disease.
"We have had to resort to taking these steps to protect the interests of patients, the nuclear medicine community, our shareholders and our customers," said president Stephen DeFalco in a statement.
AECL agreed in 1996 to build the Maple reactors for MDS Nordion, a division of MDS Inc., in order to replace the now 51-year-old NRU reactor, which currently supplies about 65% of the world's medical isotopes.
The reactors were to cost $140 million and were due to be operational by 2000 and 2001 respectively, when the NRU reactor would be decommissioned.
But eight years and nearly $600 million later, they still aren't operational.
PROJECTS SHELVED
The government decided in May to cut its losses and shelve the project all together, leaving MDS wondering how AECL was going to honour its 40-year contract to supply medical isotopes from the Maples.
"(AECL) have never wavered from maintaining they would complete the project so we were very surprised and disappointed when they announced on May 16, unilaterally, without any prior consultation, that they would be abandoning the project," said Janet Ko, MDS vice-president of communications.
The issue of isotope supplies came to the fore in the fall, when it was discovered AECL was running the NRU reactor without adhering to the rules in its licence.
When the reactor was shut down to be upgraded, it caused an international shortage of isotopes and drew attention to Canada's failed attempts to build the Maples.
Natural Resources Minister Gary Lunn yesterday defended his government's decision to shut down the Maple reactors project, insisting years of Liberal mismanagement was the real cause.
"We regret that MDS Nordion has decided to pursue litigation," Lunn said in a statement. "Neither the government nor AECL accept the allegations made ... accordingly we will be taking steps to defend AECL and the Crown."
The Opposition Liberals released a government memo last month that warns Lunn that AECL could face a penalty of $150 million for cancelling the project.
"Lunn was warned months ago that cancelling the Maple nuclear reactor project without offering a concrete alternative would have serious health and financial implications," said Omar Alghabra, the Liberal's natural resources critic.
"Now the taxpayers could be on the hook for $1.6 billion to cover up Mr. Lunn's incompetence."
MDS Inc., a life sciences company, wants Atomic Energy of Canada Limited (AECL) and the government to complete construction of the Maple 1 and Maple 2 nuclear reactors to secure its future supply of isotopes, which are used in screening for cancer and heart disease.
"We have had to resort to taking these steps to protect the interests of patients, the nuclear medicine community, our shareholders and our customers," said president Stephen DeFalco in a statement.
AECL agreed in 1996 to build the Maple reactors for MDS Nordion, a division of MDS Inc., in order to replace the now 51-year-old NRU reactor, which currently supplies about 65% of the world's medical isotopes.
The reactors were to cost $140 million and were due to be operational by 2000 and 2001 respectively, when the NRU reactor would be decommissioned.
But eight years and nearly $600 million later, they still aren't operational.
PROJECTS SHELVED
The government decided in May to cut its losses and shelve the project all together, leaving MDS wondering how AECL was going to honour its 40-year contract to supply medical isotopes from the Maples.
"(AECL) have never wavered from maintaining they would complete the project so we were very surprised and disappointed when they announced on May 16, unilaterally, without any prior consultation, that they would be abandoning the project," said Janet Ko, MDS vice-president of communications.
The issue of isotope supplies came to the fore in the fall, when it was discovered AECL was running the NRU reactor without adhering to the rules in its licence.
When the reactor was shut down to be upgraded, it caused an international shortage of isotopes and drew attention to Canada's failed attempts to build the Maples.
Natural Resources Minister Gary Lunn yesterday defended his government's decision to shut down the Maple reactors project, insisting years of Liberal mismanagement was the real cause.
"We regret that MDS Nordion has decided to pursue litigation," Lunn said in a statement. "Neither the government nor AECL accept the allegations made ... accordingly we will be taking steps to defend AECL and the Crown."
The Opposition Liberals released a government memo last month that warns Lunn that AECL could face a penalty of $150 million for cancelling the project.
"Lunn was warned months ago that cancelling the Maple nuclear reactor project without offering a concrete alternative would have serious health and financial implications," said Omar Alghabra, the Liberal's natural resources critic.
"Now the taxpayers could be on the hook for $1.6 billion to cover up Mr. Lunn's incompetence."