Mongolia Business and Mongolian Daily Business News

A working group established by the Security and Foreign Policy Standing Committee of SGK has concluded its examination on Mardai group deposits. MP Z.Enkhbold, Chairman of the Committee, held press conference.

Q: Was illegal issuance of licenses revealed during the examination?

MP Z.Enkhbold: Uranium deposits located in the territory of Bayandun, Gurvanzagal and Dashbalbar soums of Dornodn aimag were explored between 1971-1974 and “Uranium exploitation Agreement in the Mongolian territory” was made between the Government of Mongolia and Soviet Union in December 23 1981. It mined 510.6 thousand tons of ore between 1988 – 1995.

But MRA issued mining and exploration licenses to “Emeelt Mines”, “Western Prospector Mongolia”, “Adamas Mining” companies in the previously mined areas, breaching provision 2.3 of article 17 and provision 1.4 of article 19 of the Mineral Law of Mongolia. It is illegal to issue exploration license in the previously mined areas. After Agreement of Concession was annulled in late 1989 and early 1990, all uranium properties returned to Mongolia. I would like to quote two examples to give you how big scale of work were underwent in the above – mentioned areas; over 40 kilometers of railway to transport small carriers was laid and three horizontal shafts were built. After the Agreement with Russia was annulled, all reports, findings, locations of ore, electrical supply lines and over 130 kilometers long railway was transferred to the Mongolian side free. Over 14 licenses were issued to 4 companies in the previously mined areas. It is much similar to issue an exploration license in the mining area of Erdenet copper and molybdenum mine and then to raise fund at the Canadian Stock Exchange. Read the rest of this entry »

Mongolia’s biggest uranium deposit is located in Dornod province and resource of Dornod deposit is estimated 27 thousand tons. Of this deposit, 42 percent refer to Dornod Uranium, a joint company established by Mon Atom and Atomredmetzoloto. Recently Russian Atomredmetzoloto group proposes USD 36.4 million for purchasing Canadian company Khan Resources. However the Company rejected the proposal. Currently Mongolian Government has not returned the withdrawn exploration and mining license for the deposit in Dornod.

MOSCOW (Reuters) – AtomRedMetZoloto (ARMZ), a mining unit of Russia’s state-owned uranium firm Rosatom, said on Monday it would bid for Canadian miner Khan Resources Inc (KRI.TO), which has assets in Mongolia.

ARMZ’s CEO Vadim Zhivov told a news briefing it will use its own resources for the purchase.

Khan Resources said on Friday it had been informed that ARMZ would make an unsolicited offer to purchase all shares of the Toronto-based miner for 0.65 Canadian dollars ($0.610) per share.
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First law on Nuclear Energy was implemented during the spring session of SGK. The aim for this year is to fasten up the research works in uranium sites in Mongolia and to start exporting Uranium overseas by cooperating with other countries. Redirecting of uranium exploration and exploiting licenses have started. Office of Mining had temporarily suspended the licenses of Emeelt Mines and Khan Resources.

Khan Resources Inc said yesterday that it is concerned about a surprise move by Mongolia to regulate uranium mining and potentially boost the government’s ownership stake in mining assets. Khan Resources said it was still trying to confirm reports that Mongolian lawmakers approved the new mining measures last week and that, if signed into law, would take effect on Aug. 15. Read the rest of this entry »

“Khan Resource’’ signed an agreement with Marubeni, a Japanese corporation, in developing and cooperating on the uranium deposits of Mongolia.

Energy division of Marubeni Corp. has rich experience in investing in oil, gas and uranium industry and it is interested in cooperation with Khan Resource in the east Mongolia, namely Dornod aimag. It was the open pit mine, exploited by Russians. Read the rest of this entry »

Canada’s Khan Resources Inc (KRI.TO) said it expects initial capital cost for its Dornod Uranium Project in north eastern Mongolia to be about $333 million and estimates the project to be completed in 36 months.

Khan Resources said it anticipates a through-put of 3,500 tonnes per day over a 15 year mine life, which will generate an average annual production rate of 3.0 million pounds of U3O8 (uranium oxide) at a cost of $23.22 per pound of U3O8.

The company said a definitive feasibility study for Dornod indicated 25.3 million tonnes at an average grade of 0.116 percent U308 for 64.3 million pounds of U3O8.
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As the “Nikkei” Japanese newspaper reports, the “Marubeni” corporation has become the first among Japanese companies to win the right to exploit uranium deposit in Mongolia.
This issue will be officially approved this year, and Uranium extraction will start in 2012. The Marubeni is able to run activity in three areas, including Mardai and Gurvanbulag in Dornod aimag. The extraction and exploration license is owned by the Canadian “Khan Resources” company, so only portion of it will go to the Marubeni company. Resources of these areas are estimated at 62 thousand tons that are sufficient for seven-year use by Japanese atomic power plants. The Marubeni company plans to invest USD 430 million firstly. The Japanese paper also states that this corporation has already implemented a uranium extraction project in Kazakhstan.

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TORONTO, ONTARIO, Dec 04, 2008 (MARKET WIRE via COMTEX) —-Khan Resources Inc. (TSX: KRI) is pleased to announce that it has signed a Letter of Intent (LOI) with Marubeni Corporation of Japan relating to uranium exploration and mining in Mongolia. The Energy Division of Marubeni is a multi-national trading company that has been most successful in investing in the oil, gas and uranium sectors, and is interested in working with Khan on the Mongolian Dornod uranium project.

“We are excited by Marubeni’s interest in Khan’s Dornod uranium project and are optimistic about the positive influence Japanese investors have on the Mongolian mining investment environment. Marubeni is a world-class player in the commodities trading arena and we look forward to working together for the mutual benefit of all stakeholders”, stated Martin Quick, Khan’s President and CEO. Read the rest of this entry »

TORONTO, ONTARIO–(Marketwire – Oct. 21, 2008) – Khan Resources Inc. (TSX:KRI) announced today that the Toronto Stock Exchange (”TSX”) has accepted a notice filed by Khan Resources of its intention to make a normal course issuer bid.

Khan Resources currently has 54,143,279 common shares outstanding. The notice provides that under the normal course issuer bid, Khan Resources may purchase up to 4,056,828 common shares, being 10% of the public float. In addition, the notice provides that the aggregate number of shares that Khan Resources may purchase during any trading day will not exceed 22,978 shares, being 25% of the average daily trading volume of the shares based on their trading volume on the TSX for the most recently completed six calendar months preceding the date of the notice of intention, subject to the Company’s ability to make “block” purchases through the facilities of the TSX in accordance with the TSX rules. Read the rest of this entry »