Mongolia ends fight over $100 mln mining license arbitration

Mongolia has settled a dispute over an arbitration award that required it to pay more than $100 million last year to a Canadian miner for revoking a uranium mining license, just as it launches a push this week to attract new exploration interest.
"The Government of Mongolia and Khan Resources Inc. successfully reached an agreement that effectively resolves all outstanding issues in regards to the international arbitration awards," Mongolian Finance Minister Bolor Bayarbaatbar said in a statement released by Khan late on March 6.
"The settlement demonstrates the Government's ongoing commitment to improving the investment climate," he said.
Mongolian finance ministry officials could not be reached for comment on the settlement while in Toronto for the annual Prospectors & Developers Association of Canada conference, where the Mineral Resources Authority said it will pitch mining and infrastructure projects and auction off exploration licenses.
"I think it helps their foreign investment case for Canadians and any foreign investor," said Jim Dwyer, executive director of the Business Council of Mongolia.
Khan Resources' statement did not say how much the government paid.
Mongolian Prime Minister Chimed Saikhanbileg has been touting the minerals-rich country as "Open for Business" in the wake of sharp declines in foreign investment since 2012 and plummeting prices for its top exports of copper and coal.
Investors turned cold on the country's once-booming mining sector partially because of public disputes with miners such as giant Rio Tinto and Khan Resources.
A Paris tribunal last March ordered Mongolia to pay Toronto-listed Khan Resources damages for revoking Dornod uranium mining license in 2009 and transferring it to Russian partner ARMZ.
Mongolia refused to make the payment, and last week Khan said it would press the Canadian government to suspend aid to the country if no settlement was reached for the $106 million, including interest, it was owed as of February.
Saikhanbileg's Democratic Party may take heat for the decision to settle the dispute from opposition and resource nationalist campaigners ahead of parliamentary elections on June 29.
The prime minister survived a no-confidence in January for his role in signing an agreement with Rio Tinto to push forward a $5 billion underground mining project at its Oyu Tolgoi copper mine.



Post a Comment

Facebook page

Powered by Blogger.


Advertising in Mongolia An Asian Development Bank Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia Adventure Mongolia agriculture Mongolia analysis Mongolia and Armenia Mongolia and Asian Development Bank Mongolia and Australia Mongolia and Azerbaijan Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and Czech Mongolia and donors Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and IMF Mongolia and India Mongolia and Indonesia Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Israel Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Kyrgyzstan Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Qatar Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and Thailand Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and US Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia blind Mongolia civic society Mongolia Corruption Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia environment Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Nuclear Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia slums Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia trade Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Climate Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Kazakh Mongolian Meat Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive