Khan wins second Mongolian case

By: Liezel Hill
3rd August 2010

TORONTO (miningweekly.com) – TSX-listed Khan Resources has won a second positive ruling in Mongolia, this time reinstating the uranium exploration licence held by subsidiary Khan Mongolia, the firm said on Tuesday.

The Mongolian Capital City Administrative Court declared that the decision by the Mongolian Nuclear Energy Agency (NEA) to invalidate Khan Mongolia's exploration licence 9282X was invalid and illegal.

The decision follows a ruling on July 19, in which the Mongolian court also ruled that a decision to invalidate the mining licence of Central Asian Uranium Company (CAUC), in which Khan owns 58%, was actually invalid and illegal.

In April, both CAUC and Khan's 100%-owned Mongolian subsidiary Khan Mongolia received notices from the NEA, which said that their respective licences had been invalidated as of October 2009, based on unspecified violations of Mongolian law.

CAUC holds the licence for the Dornod uranium project, and Khan Mongolia has an exploration licence for an adjoining property.

The NEA has the right to appeal the court's decisions on CAUC by August 9, and on Khan Mongolia by August 23.

“Khan continues to believe that it and its Mongolian subsidiaries have always operated in compliance with applicable Mongolian laws,” the company said in a statement.

“As such, any appeal of the court decisions by the NEA will be vigorously challenged by Khan through all legally available means.”

Although the two licences are no longer considered invalid, they will need to be approved for re-registration under the new Nuclear Energy Law in Mongolia.

Assuming the NEA does not appeal, Khan will now continue the process of re-registering the licences under the legislation, CEO Grant Edey said.

Source:www.miningweekly.com