Khan Resources LLC has claimed 285 million USD in losses from actions taken by the Mongolian government and won a case against the government in the International Court of Arbitration. The court ordered that Mongolian government pay 100 million USD to Khan Resources. State Secretary of the Ministry of Justice J.Bayartsetseg has spoke to the media about the ruling.    

The Mongolian Government lost the case with the International Court of Arbitration and now has to pay a large amount of money to Khan Resources. Could you please give us detailed information regarding this case?  

The claimants of this case were Khan Resources LLC and Central Asian Uranium. This has become one of the main issues of the dispute. 

After the arbitration dispute, which began on January 10, 2011, over the duration of four years, the court has met three times. 

Following the first court session in 2011, according to the appeal of the Mongolian government, it was decided that the case would be divided into cases of subordination  dispute and reimbursement dispute.

In May 2012, the case became a subordination dispute, and it was considered a dispute for the arbitration court and several violations had been made. The third court session on the reimbursement issue was organized in November 2013.

From the Canadian side, there was a claim that the license had been illegally withdrawn.

The court decision was issued yesterday, and a document of more than 100 pages has been delivered but we haven’t discussed it yet. According to the court's decision, the Mongolian government will have to pay 80 million USD and also we need to pay the costs of the court.

Do we have the chance to appeal?

The Government of Mongolia will decide what will be the next steps and measures to be taken. The right to appeal is open. In addition, the issue of negotiation and conciliation is also open. The Government of Mongolia will decide which path to choose.

Is there any deadline for an appeal?

There is no fixed term, but I think that it is not a very long term.

Is the license now in our ownership?

According to the court's decision, the license of the mine hasn’t been withdrawn. The Government of Mongolia is now keeping this license, so interested companies can utilize the license and conduct exploration and investments, so it is open. Maybe the possibility to provide an investment is open by repaying expenses due to the court.