Mining company wants Ottawa to halt Mongolia aid over dispute

By Rod Nickel
WINNIPEG, Manitoba, March 3 (Reuters) - Canadian uranium
company Khan Resources Inc KRI.CD wants Ottawa to suspend aid
to Mongolia if it fails to reach a settlement with the Asian
country for cancelling Khan's mining license, its chief
executive said on Thursday.
An international tribunal ordered Mongolia last year to pay
about $100 million to Khan as compensation for having canceled
in 2009 its license to mine the Dornod uranium project, which
was in development.
Khan maintains that Mongolia planned to grant the rights to
Russia's ARMZ, but stopped when its move drew attention.
The money has not been repaid.
"Mongolia ... is not complying," said Grant Edey, Khan's
chief executive. "You have to step up and treat them as a bad
actor."
Edey said he has not yet met with elected officials in the
Canadian government, which was elected in October, to request
that it stop aid to Mongolia. Annual Canadian aid to Mongolia is
at least C$4 million, Edey said.
Edey plans to meet with a Mongolian delegation scheduled to
attend next week's Prospectors & Developers Association of
Canada (PDAC) mining convention in Toronto.
Khan and Mongolian officials last met in January to discuss
a settlement, with limited progress, Edey said.
"We would like to settle. They say they would like to
settle, but they've given more indication of delay than anything
else," he said.
A spokesperson for Canada's Global Affairs department could
not be reached after business hours. The Mongolian Embassy to
Canada said ambassador Radnaabazar Altangerel was not available.
Mongolia is trying to annul the arbitration award in a
French court. Khan has filed for court certification of its
award in the United States, which may allow it to seize
Mongolian commercial assets there.