Mongolia has been ordered to pay about $100 million to Canada-based Khan Resources Inc as compensation for cancelling its uranium licenses in a long-awaited decision from an international tribunal.
J.Bayartsetseg, State Secretary at the Ministry of Justice has made an official announcement today regarding the news.
The court hearings have started in 2011 and during the last four years time three hearings were conducted. During the first hearing GoM proposed the disputes to be identified as of affiliation and compensation, which were accepted.
In May 2012 court hearing conducted in Paris, France has ruled out that the case to be discussed through the international tribunal.
Third court hearing was held in November 2013, which discussed the amount of the compensations claimed. Khan Resources and Central Uranium Holding had claimed $358 million in compensation, including interest and costs at the international tribunal from GoM.
At that time GoM answered that the amount of the claim is unreasonably high.
Yesterday, during the hearing in Paris, the international arbitration tribunal based its calculation of USD100 million, including interest and costs.
J.Bayartsetseg: 'Court ruling was delivered yesterday. We have received 100 page document, which we need to review. It is open for GoM to take next steps. We are entitled to negotiations with the claimant. GoM is to decide which route to follow. License was never cancelled. It is still in hands of the GoM as no resolution on transferring it to the other side. Thereore, any interested party is open to invest.'
Case related with Khan Resources is the fifth, in which GoM is participating at the international arbitration. As several governments are involved in those cases, working groups have been established for each of them.
-Why the disputes started? What were the reasons for cancelling the license?
-It is related with the Mineral Resources Authority and Nuclear Energy Authority worked during 2006-2009. Special Inspection Authority at that time concluded that it violated certain laws and regulations. According to the Nuclear Energy Law approved in 2008 every uranium deposit license holder had to re-register with the authorities, where Khan Resources lacked to do so.
-What will be the actions of GoM?
-Every action is open. We have rights to appeal or to negotiate with the claimant party.
-Is there strict timeframe for paying the compensation?
-No specific timeframe has been set. Arbitration process takes time itself.
-How much cost did GoM accrue over three international tribunal hearings?
-As you may all know court hearings always have costs attributed even for the individual. Arbitration has high costs. We have hired law firms and the costs are as well high. The exact cost cannot be disclosed.
Mongolia has been ordered to pay about $100 million to Canada-based Khan Resources Inc as compensation for cancelling its uranium licenses in a long-awaited decision from an international tribunal.
J.Bayartsetseg, State Secretary at the Ministry of Justice has made an official announcement today regarding the news.
The court hearings have started in 2011 and during the last four years time three hearings were conducted. During the first hearing GoM proposed the disputes to be identified as of affiliation and compensation, which were accepted.
In May 2012 court hearing conducted in Paris, France has ruled out that the case to be discussed through the international tribunal.
Third court hearing was held in November 2013, which discussed the amount of the compensations claimed. Khan Resources and Central Uranium Holding had claimed $358 million in compensation, including interest and costs at the international tribunal from GoM.
At that time GoM answered that the amount of the claim is unreasonably high.
Yesterday, during the hearing in Paris, the international arbitration tribunal based its calculation of USD100 million, including interest and costs.
J.Bayartsetseg: 'Court ruling was delivered yesterday. We have received 100 page document, which we need to review. It is open for GoM to take next steps. We are entitled to negotiations with the claimant. GoM is to decide which route to follow. License was never cancelled. It is still in hands of the GoM as no resolution on transferring it to the other side. Thereore, any interested party is open to invest.'
Case related with Khan Resources is the fifth, in which GoM is participating at the international arbitration. As several governments are involved in those cases, working groups have been established for each of them.
-Why the disputes started? What were the reasons for cancelling the license?
-It is related with the Mineral Resources Authority and Nuclear Energy Authority worked during 2006-2009. Special Inspection Authority at that time concluded that it violated certain laws and regulations. According to the Nuclear Energy Law approved in 2008 every uranium deposit license holder had to re-register with the authorities, where Khan Resources lacked to do so.
-What will be the actions of GoM?
-Every action is open. We have rights to appeal or to negotiate with the claimant party.
-Is there strict timeframe for paying the compensation?
-No specific timeframe has been set. Arbitration process takes time itself.
-How much cost did GoM accrue over three international tribunal hearings?
-As you may all know court hearings always have costs attributed even for the individual. Arbitration has high costs. We have hired law firms and the costs are as well high. The exact cost cannot be disclosed.