Australia
October 5, 2009

AWB Managing Director Gordon Davis today announced the company has signed a Deed of Settlement with the Ministry of Trade & Grain Board of Iraq covering all previous commercial disputes. These relate to commercial dealings such as quality claims and demurrage disputes covering trading activities by the former National Pool on behalf of Australian wheat growers.

AWB had held a financial provision in its 2005/06 season National Pool accounts to allow for such disputes and the settlement means that AWB will now be able to pay the balance out to growers in that Pool.

"AWB has worked closely with the Ministry of Trade and the Grain Board of Iraq to reach an agreed settlement on these legacy matters," Mr Davis said.

“The finalisation of these commercial issues with the Ministry of Trade and the Grain Board of Iraq opens the way for AWB to export wheat to Iraq in the future.

"AWB is pleased these outstanding commercial issues have been finalised and Australian growers will welcome the release of these funds.
 
“We would like to thank the Australian Government and the efforts of Austrade to facilitate finalisation of these outstanding disputes,” Mr Davis said.

AWB will announce further details of the finalisation process and further Pool distribution payments in the near future.

With the resolution of these outstanding matters AWB moves closer to final closure of the 2005/06 AWB National Pool and completion of the previous National Pools operated by AWB International ("AWBI") as the 'Single Desk' manager.

Website: http://www.awb.com.au

Published: October 5, 2009