Marketing Canadian asbestos shipments, which in 1980 totalled approximately 1.2 million metric tonnes, had decreased to approximately 850 000 metric tonnes in 1982, a decline of about 30 percent. Preliminary figures for 1983 shipments are similar to 1982 levels, suggesting that asbestos fibre consumption levels may have stabilized. Markets are expected to improve with the increase in world construction activity as the economic recovery becomes more wide- spread. Free world production capacity remains at a level in excess of 4 million metric tonnes per annum, with Canadian capacity at approximately 1.5 million metric tonnes per annum, consequently, pricing will continue to be extremely competitive. Despite these difficult circumstances, Cassiar has increased its share of the Canadian export market from 8 percent in 1980 to 10 percent in 1983 and sold approximately 90 percent of production capacity in 1983. Product Liability Litigation Brinco Mining Limited continues to be named along with other asbestos producers in ULS. legal actions in which it is alleged that the producers are liable to individuals who have contracted disease as a result of exposure to asbestos, chiefly in manufacturing plants and in the handling and use of asbestos fibre products. Brinco Mining Limited has also been named in several actions in which damages are claimed for the cost of removal of asbestos materials from certain public buildings. Brinco Mining Limited denies such liability and continues to defend its position in all actions which have been brought against It. None of the cases in which Brinco Mining Limited is named a defendant went to trial during 1983, due in large measure to court- imposed delays pending further developments in Manville Corporation’s petition for relief under Chapter 11 of the ULS. Bankruptcy Code. The outcome of the petition and its eventual impact on Brinco Mining Limited and other asbestos producers is not expected for several months but increased litigation activities are anticipated in 1984. Brinco Mining Limited Brinco Mining Limited has entered into an agreement with one of its major insurers under which the insurer has reimbursed Brinco Mining Limited for a large portion of its past defence costs. The insurer has also undertaken the defence of actions based on exposure to asbestos at any time during its policy periods between 1955 and 1975. Indemnification of future settlements and judgments remains under discussion.