Medvedev approves ratification of agreement on joint uranium company with Mongolia

MOSCOW, January 6 (Itar-Tass) - Russian President Dmitry Medvedev has signed into law the Federal bill "On the Ratification of the Agreement between the Governments of the Russian Federation and Mongolia on the Founding of a Joint (uranium mining) Limited-Liability Company 'Dornod-Uranium'," the Kremlin press service announced.

The Bill was passed by the State Duma lower house of parliament on December 22 and approved by the Federation Council upper house of parliament on December 24, 2010.

The Agreement was drawn up by the Rosatom state corporation for the purposes of maximum protection of the rights and interests of Russia in the sphere of prospecting for and mining of uranium in Mongolia's territory. The Agreement provides for the founding of a joint limited-liability company for the mining of uranium and other associate economic minerals.

Provision is made for the main areas of the prospective company's activities as prospecting for and mining of uranium ores, transportation, the processing and enrichment of the mined minerals, the marketing of the end product, the establishment and operation of uranium production and processing plants and other infrastructure facilities on Mongolia's territory, the attraction of investments to finance joint activities in Mongolian territory, the conduct of recultivation work, and the ensurance of nuclear, radiological, and environmental safety.

The Atomredmetzoloto public joint-stock company will act as the founder of the Joint Company on the Russian side. Rosatom will act as a competent agency.

The Agreement was subject to ratification, for it contains rules that differ from those provided for by Russia's legislation. Specifically, the Agreement presupposes the establishment of a legal entity in the organizational-and-legal form of a joint limited-liability company. Russian legislation lacks such a provision.

Source:ITAR-TASS, Russian News Agency