Submitted by MONTSAME on

Ms J.Bayartsetseg, State Secretary of the Ministry of Justice of Mongolia called on Thursday a press conference to make an official announcement about the news that Mongolia has to pay according to the decision of the International court of Arbitration 100 million dollars to the Khan Resources Inc company for cancelling its uranium licenses over the Dornod uranium deposit.
The dispute concerning the licence began in 2009. The main reason for the dispute is connected with the Nuclear Energy Law approved in 2008 under which all holders of uranium licenses were required to submit applications to re-register their licenses, but Khan Resources company didn’t obtain new licences under the new law. For that reason, its uranium licence was cancelled by the Government of Mongolia.
In protest of this decision, Khan Resources and Central Uranium Holding had claimed from the Mongolian government 325 million dollars as a compensation for cancelling the licence at the international court of arbitration.
The court hearings started in 2011 and three hearings were held during the last four years.
Last court hearing was held in 2013, during which the amount of the compensation was discussed. On the 2nd of March 2015, the international arbitration court made its decision according which Mongolia has to pay 100 mln dollars as a compensation.
Ms J.Bayartsetseg said that Mongolia has the rights to appeal or to negotiate with the claimant party. She also noted that Government of Mongolia is still keeping the license..

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