Dispute over the uranium license of Khan Resource has been soaring since Naadam. As reported earlier on www.business-mongolia.com, according to the court decision, the Nuclear Energy Agency lost its case against Khan Resource and if the license will not be revoked, the Mongolian Government would be called to the International Arbitrage Court.
Another scandal was published on Unuduur Newspaper (No184, Wednesday, August 08 2010) on Khan Resource uranium secret deal. Binding force of Memorandum of Understanding is not strong, however, MonAtom LLC, a state owned company in charge of uranium, and Khan Resource, a Canadian uranium company, signed Memorandum of Understanding in January 22 2010 in Ontario State, Canada. As stated in MOU, its dispute will be settled according to Ontario State law.
Nuclear Energy Agency is in charge of implementing the state policy on radioactive mineral and nuclear energy, introduction of nuclear technology and nuclear research and of ensure safety of radioactive and nuclear and their professional monitoring.
But MonAtom LLC is a state owned company, belongs to the Nuclear Energy Agency and will represent the state involvement in the uranium exploration and mining operations. It must be emphasized that not the state but the state involvement. But it is truly suspicious act was committed by Mr. Badamdamdin, former MP and Executive Director of MonAtom, who personally visited to Canada and signing MOU with Martin Quick, President of Khan Resource, and Paul Caldweu, Executive Director of Khan Resource, exceeding his power.
Many paragraphs of MOU severely breached the Mongolian Policy on uranium and radioactive mineral and Nuclear Energy Law of Mongolia.
Some controversial paragraphs said that “… suspended mining license 237A, which was held by Central Asian Uranium LLC will be reissued within 7 days after the signature …a mining license 237A and an exploration license 9282X, which was held by Khan Mongol LLC will be reissued according to the Nuclear Energy Law, within 7 days after signature of MOU… and 9282X exploration license will become mining license within 45 days after signature of this MOU…”
Shortly after the signature, in January, Khan Resource share surged at TSX, reported by miningweekly.com