Khan Resources Inc., Khan Resources B.V., CAUC Holding Company Ltd. v The Government of Mongolia, MonAtom LLC - PCA Case No. 2011-09 - Notice of Arbitration - 10 January 2011
Khan Resources Inc. announced on January 10th 2011 that it has formally commenced an international arbitration action against the Government of Mongolia for its expropriatory and unlawful treatment of Khan in relation to the Dornod uranium deposit located in northeastern Mongolia. The Nuclear Energy Agency of Mongolia announced in November 2010 that it would not reinstate the licenses that the Company holds on the Dornod uranium property, but which the Government illegally cancelled so that it could pursue the project without Khan. The arbitration, which is brought by Khan and several of its subsidiaries, will take place under the Arbitration Rules of the United Nations Commission on International Trade Law, and asserts claims under the Energy Charter Treaty, the Foreign Investment Law of Mongolia, and the Founding Agreement between Khan and the Mongolian Government. The claim has been today served on various officials of the Government of Mongolia. The claim seeks over US$200 million in compensation for losses and damages.