Stans Energy Corp has filed an appeal to the Bishkek City Court in response to the ruling from the Inter-District Court of Bishkek in favour of the Kyrgyz General Prosecutor’s Office (GPO) claim against Stans’ wholly owned Kutessay II Project.
This administrative case was filed on March 26, 2013 against the State Agency on Geology and Mineral Resources under the Government of the Kyrgyz Republic (SGA) to annul the December 21, 2009 Minutes of Negotiations (registration No 1736-H-09) between the SGA and public company OJSC Kutisay Mining (100%-owned by the government). Kutisay Mining LLC is involved in the case as a third party.
On March 19, 2014,the Bishkek Inter-District Court granted the claim of the GPO and cancelled Minutes No 1736-H-09 of the direct negotiations between the SGA and OJSC Kutisay Mining dated December 21, 2009. This ruling thus invalidates the process in which the mining licence for Kutessay II was acquired.
The primary rationale behind the judgment of the Bishkek Inter-District Court was that the SGA was not objecting to the facts of the case as put forth by the GPO, which had been submitted to the court on May 29, 2013. Stans believes the SGA’s conduct of the SGA’s own defence was improper, and as a consequence, the GPO was able to prevail in the Inter-District Court.
Based on this and other mitigating factors the company has filed an appeal to the Bishkek City Court seeking to:
- Annul the Bishkek Inter-District Court judgment dated March 19, 2014.
- Dismiss the claim of the General Prosecutor’s Office of the Kyrgyz Republic for cancellation of Minutes No. 1736-H-09 of direct negotiations between the state Agency for Geology and Mineral Resources under the Government of the Kyrgyz Republic and OJSC Kutisay Mining dated December 21, 2009.
Stans’ international arbitration suit is ongoing with the next hearing scheduled for April 29, 2014. A final decision will be handed down shortly thereafter regarding the US$117.853 million claim brought by the company against the Government of the Kyrgyz Republic.
Stans Energy is a resource development company focused on progressing Heavy Rare Earth (HRE) properties in areas of the Former Soviet Union. In December 2009, Stans acquired a 20-year mining licence for the past-producing Kutessay II rare earth mine from the Kyrgyz Republic. On May 26, 2011 Stans completed the purchase of the Kashka Rare Earth Processing Plant, the same plant that previously refined REEs historically from Kutessay II.
This was the only hard rock plant to produce all rare earth elements outside of China, producing 120 different metals, alloys, and oxides. For more than 30 years, Kutessay II produced 80% of the rare earth metals for the former Soviet Union.