Khan Resources to fight Mongolia license decision
* Says no legal basis for Mongolia to reject licenses
* Considering all legal means, international arbitration
* Shares down 5.56 pct at C$0.51
TORONTO, Nov 12 (Reuters) - Khan Resources (KRI.TO) said on Friday that it would use all available legal means, including international arbitration, to fight a decision by Mongolian authorities not to reinstate the Canadian miner's licenses at the Dornod uranium deposit.
Toronto-based Khan said Mongolia's Nuclear Energy Agency (NEA) had published a notice in Mongolian newspapers saying it would not reinstate the exploration and mining licenses. It said there was no legal basis for the agency's decision.
Khan has been caught up in an eight-month-long legal dispute with the NEA over exploration at Mongolia's largest uranium deposit, which was licensed through subsidiaries Khan Resources LLC and Central Asian Uranium Co LLC.
Khan said the NEA had not responded directly to its request to reinstate the licenses, but the newspaper reports suggest the agency has ruled against the miner on the grounds it violated Mongolian law.
The junior miner said it has not violated any laws and will challenge the agency's ruling. Khan has already won two court decisions in Mongolia over the licensing, the first in July and then again in October.
The company originally submitted an application to re-register its mining and exploration licenses in November 2009, after the Mongolian government changed rules relating to resource ownership.
A deal between Ivanhoe Mines (IVN.TO) and Rio Tinto (RIO.L) to develop the Oyu Tolgoi mine has put the mineral rich country in the investment spotlight.
But there are geopolitical risks to investing in Mongolia, which is sandwiched between Russia and China.
Shares in Khan Resources were down 5.56 percent at 51 Canadian cents on Friday on the Toronto Stock Exchange.
($1=$1.01 Canadian) (Reporting by Julie Gordon; editing by Rob Wilson)
* Considering all legal means, international arbitration
* Shares down 5.56 pct at C$0.51
TORONTO, Nov 12 (Reuters) - Khan Resources (KRI.TO) said on Friday that it would use all available legal means, including international arbitration, to fight a decision by Mongolian authorities not to reinstate the Canadian miner's licenses at the Dornod uranium deposit.
Toronto-based Khan said Mongolia's Nuclear Energy Agency (NEA) had published a notice in Mongolian newspapers saying it would not reinstate the exploration and mining licenses. It said there was no legal basis for the agency's decision.
Khan has been caught up in an eight-month-long legal dispute with the NEA over exploration at Mongolia's largest uranium deposit, which was licensed through subsidiaries Khan Resources LLC and Central Asian Uranium Co LLC.
Khan said the NEA had not responded directly to its request to reinstate the licenses, but the newspaper reports suggest the agency has ruled against the miner on the grounds it violated Mongolian law.
The junior miner said it has not violated any laws and will challenge the agency's ruling. Khan has already won two court decisions in Mongolia over the licensing, the first in July and then again in October.
The company originally submitted an application to re-register its mining and exploration licenses in November 2009, after the Mongolian government changed rules relating to resource ownership.
A deal between Ivanhoe Mines (IVN.TO) and Rio Tinto (RIO.L) to develop the Oyu Tolgoi mine has put the mineral rich country in the investment spotlight.
But there are geopolitical risks to investing in Mongolia, which is sandwiched between Russia and China.
Shares in Khan Resources were down 5.56 percent at 51 Canadian cents on Friday on the Toronto Stock Exchange.
($1=$1.01 Canadian) (Reporting by Julie Gordon; editing by Rob Wilson)
0 Response to "Khan Resources to fight Mongolia license decision"
Post a Comment