3,385.87
Khan Resources last week announced it has won a court
challenge to a Mongolian decision to invalidate a key mining license held by a
subsidiary of the company. The Mongolian Capital City Administrative Court has
ruled in favor of Central Asian Uranium Company (CAUC), in which Khan owns 58%,
“and declared that the previous purported decision by the Mongolian Nuclear
Energy Agency (NEA) to invalidate CAUC”s mining license 237A is itself invalid
and illegal”, the firm said.
In April, both CAUC and Khan”s 100%-owned Mongolian subsidiary Khan Mongolia
received notices from the NEA, which said that their respective licenses had
been invalidated as of October 2009, based on unspecified violations of
Mongolian law. CAUC holds the license for the Dornod uranium project, and Khan
Mongolia has an exploration license for an adjoining property.
Khan said at the time that it planned to challenge the notices in Mongolian
court, and then-CEO Martin Quick suggested that Mongolian officials were acting
under pressure from Russia, which wants to participate in the development of
the Dornod project. “We are extremely pleased that the court accepted all
of CAUC”s claims and unequivocally affirmed that the NEA”s actions were
unlawful and illegal,” Khan CEO Grant Edey said.
NEA has the right to appeal the decision within two weeks. Although CAUC”s
mining license is no longer considered invalidated, the company will need to
wait for it to be approved for re-registration under Mongolia”s new nuclear
energy law. CAUC applied in November last year to have the license
reregistered.
“Khan continues to believe that it and its Mongolian subsidiaries have always
operated in compliance with applicable Mongolian laws. Khan intends to continue
to vigorously challenge the NEA”s action, including any appeals the NEA may
bring, through all legally available means,” the company said.
challenge to a Mongolian decision to invalidate a key mining license held by a
subsidiary of the company. The Mongolian Capital City Administrative Court has
ruled in favor of Central Asian Uranium Company (CAUC), in which Khan owns 58%,
“and declared that the previous purported decision by the Mongolian Nuclear
Energy Agency (NEA) to invalidate CAUC”s mining license 237A is itself invalid
and illegal”, the firm said.
In April, both CAUC and Khan”s 100%-owned Mongolian subsidiary Khan Mongolia
received notices from the NEA, which said that their respective licenses had
been invalidated as of October 2009, based on unspecified violations of
Mongolian law. CAUC holds the license for the Dornod uranium project, and Khan
Mongolia has an exploration license for an adjoining property.
Khan said at the time that it planned to challenge the notices in Mongolian
court, and then-CEO Martin Quick suggested that Mongolian officials were acting
under pressure from Russia, which wants to participate in the development of
the Dornod project. “We are extremely pleased that the court accepted all
of CAUC”s claims and unequivocally affirmed that the NEA”s actions were
unlawful and illegal,” Khan CEO Grant Edey said.
NEA has the right to appeal the decision within two weeks. Although CAUC”s
mining license is no longer considered invalidated, the company will need to
wait for it to be approved for re-registration under Mongolia”s new nuclear
energy law. CAUC applied in November last year to have the license
reregistered.
“Khan continues to believe that it and its Mongolian subsidiaries have always
operated in compliance with applicable Mongolian laws. Khan intends to continue
to vigorously challenge the NEA”s action, including any appeals the NEA may
bring, through all legally available means,” the company said.
