Mining company wants Ottawa to halt Mongolia aid over dispute

Sol Strategies

03/03/2016 23:38

By Rod Nickel 
    WINNIPEG, Manitoba, March 3 (Reuters) - Canadian uranium 
company Khan Resources Inc  KRI.CD  wants Ottawa to suspend aid 
to Mongolia if it fails to reach a settlement with the Asian 
country for cancelling Khan's mining license, its chief 
executive said on Thursday. 
    An international tribunal ordered Mongolia last year to pay 
about $100 million to Khan as compensation for having canceled 
in 2009 its license to mine the Dornod uranium project, which 
was in development.  
    Khan maintains that Mongolia planned to grant the rights to 
Russia's ARMZ, but stopped when its move drew attention. 
    The money has not been repaid.  
    "Mongolia ... is not complying," said Grant Edey, Khan's 
chief executive. "You have to step up and treat them as a bad 
actor." 
    Edey said he has not yet met with elected officials in the 
Canadian government, which was elected in October, to request 
that it stop aid to Mongolia. Annual Canadian aid to Mongolia is 
at least C$4 million, Edey said.  
    Edey plans to meet with a Mongolian delegation scheduled to 
attend next week's Prospectors & Developers Association of 
Canada (PDAC) mining convention in Toronto. 
    Khan and Mongolian officials last met in January to discuss 
a settlement, with limited progress, Edey said. 
    "We would like to settle. They say they would like to 
settle, but they've given more indication of delay than anything 
else," he said. 
    A spokesperson for Canada's Global Affairs department could 
not be reached after business hours. The Mongolian Embassy to 
Canada said ambassador Radnaabazar Altangerel was not available. 
    Mongolia is trying to annul the arbitration award in a 
French court. Khan has filed for court certification of its 
award in the United States, which may allow it to seize 
Mongolian commercial assets there. 
 
 (Reporting by Rod Nickel; Editing by Sandra Maler) 
 ((rod.nickel@thomsonreuters.com; 1 204 230 6043; Reuters 
Messaging: rod.nickel.thomsonreuters.com@reuters.net; Twitter: 
@ReutersWinnipeg)) 
 
Keywords: MONGOLIA KHAN RESOURCES/