| “Substantially all asbestos
revenue is derived from
sales to customers
outside of Canada. Sales
to two major customers,
under contracts which
generally are not more
than one year in duration,
account for approximately
one-half of the revenue in
1981 and approximately
one-third in 1980.

9. Legal Actions

Brinco Mining Limited, as well as others,
continues to be named as a defendant in a
large number of product liability suits in the
United States in which substantial damages
are claimed for alleged injuries to the health
of asbestos workers and others by means
of their exposure to asbestos fibres or dust.
The subsidiary company is currently
involved in approximately 775 such suits.
Since 1974, the company has been involved
in approximately 2,000 claims and has
agreed to settle or been dismissed from
approximately 1,225 claims. From 1974 to
date, legal and settlement costs have
totalled $5,700,000. The costs to date may
not be indicative of future costs since the
company’s potential liability in each case
depends upon a great many factors apart
from legal defenses, including the
seriousness of the claimant's illness and
whether the illness is related to exposure to
asbestos supplied by the company.

Segmented Information

Revenue

Operations
Canada
United States

Total Revenue

Earnings
Canada
United States

Total Earnings
Depletion and Depreciation
Capital Employed

Identifiable Assets
Canada
Operating
Non-operating
United States
Operating

Total Identifiable Assets

Expenditures on Property, Plant and Equipment
and Long-term Investments

The company held policies of insurance
providing coverage for product liability in —
the years 1953 to 1975. The company

takes the position that a substantial portion —
of the settlement and litigation costs, as

well as any judgments that might be

rendered against it, shoud be reimbursed

by its insurance carriers. While these
insurers have thus far denied coverage in —

most instances, the company has instituted
litigation in the Ontario courts to recover er

certain of these costs.
10. Commitments

Exploration and Development

As a condition of the purchase of Brinco. . i
Oil & Gas Limited in 1979, the Company aes
agreed to spend over the ensuing five years as

$25,000,000 for exploration and
development of oil and natural gas properties
principally in Canada (to date the Company —
has spent approximately $19,000,000).

Asbestos *
1981 1980

Coal
1981

$ 76,300 $ 8,753

2: -76;300) = $*.-8;753

$3,489: $.. ‘2R7 $
~ oe (745)

$ 3439 $ 287 $ (745)

$ 20,637 $ 1,802 $ 763

$133,891 $138,788 $7,309 $3,404

$138,775 $132,010
18,807 17,067

ae oa TAS 3,447

$157,582 $149,077 $8,191 $3,447

9° 23, 193% (S$ 367-225 $4,533 $3,293

1980

A,