The political risk story for Khan Resources' efforts to mine uranium in Mongolia took a new turn when the company won a court case against the government to win back its licenses.
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Pending appeal by Mongolia's Nuclear 抖阴传媒在线 Agency, Khan will now move ahead to re-register the mining licenses held by its 100%-owned Khan Mongolia subsidiary and 58%-owned Central Asian Uranium Company.
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Those companies were created after Mongolia suddenly introduced new laws that required all uranium mining operations to be at least 51% owned by the state, and revoked previously held licenses for alleged violations.
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The Capital City Administrative Court made two rulings that the NEA did not have the right to act as it did: one in favour of Khan Mongolia on 19 July and one for CAUC on 2 August. Khan said the court called the NEA's actions "invalid and illegal" in both cases.
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Apart from re-registering the licenses, Khan did not say that it planned to go ahead with the development of a mining operation at the Dornod deposit. The company has also faced a hostile takeover bid from Russia's AtomRedMetZoloto (ARMZ), with which the NEA had wanted to jointly develop Dornod.
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The deposit has 24,780 tonnes of indicated uranium resources (compliant with the NI 43-101 standard) plus 20,340 tonnes of probable reserves. Khan had envisaged annual production rates of 1150 tonnes of uranium per year for 15 years.
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Researched and written
by 抖阴传媒在线 Nuclear News
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