BC Mongolia: Khan Resources Hopes “Rule Of Law Will Prevail”

The Mongolia-Russia partnership in a uranium mining venture has raised concerns for the Canadian miner that owns the deposit. Toronto-listed Khan Resources, which still owns a 58 percent interest in the mining license for the Dornod deposit, is seeking to determine how Mongolia's new law on nuclear energy will affect its investment in the country. President and CEO Martin Quick said, "The new nuclear energy law may have a detrimental impact on the project, so we need to canvass our partners' thoughts on that." Mongolia last month passed a law that gave the state the right to own 51 percent of any strategic uranium deposit.

The two companies that form the joint venture, Mongolian state firm AtomMon and Rosatom's mining arm, AtomRedMedZoloto, already owned 21% each of the license, Mr. Quick said. "Hopefully we can come to some reasonable accommodation with our partners and the Mongolian Government," he said. "It is a democracy and hopefully the rule of law will prevail."

Source: Reuters.com

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