Khan Resources is pleased with a statement by Mongolia’s Prime Minister Saikanbileg that the government will comply with March 2, 2015 international arbitration award in favour of Khan. The company however, has not yet received any direct communication from Mongolia on this matter.

In response to a Bloomberg News question late last month during an interview in New York, the PM said, “We’re not ignoring, we’re respecting. We will comply.”
At the current time, the award aggregates to approximately US$104 million.

On June 12 Khan filed a petition for confirmation of its international arbitration award in the US District Court in the District of Columbia. The award was rendered in favour of Khan by a senior and well-respected international arbitration tribunal after more than four years of consideration.

The award is compensation to Khan for the Government of Mongolia’s illegal actions in relation to the cancellation and expropriation of Khan’s uranium licences in 2009. The award consisted of a Base Amount of US$80 million plus interest at LIBOR +2% (compounded annually) from July 1, 2009 to the time of payment plus costs of US$9.1 million.

The petition for confirmation was brought under the United Nations Convention for the Recognition and Enforcement of Foreign Arbitral Awards and under the United States Federal Arbitration Act. When confirmed, the award will be executable in the US as a court judgement.