Court to hear Canadian Khan Resources' suit against Russia's uranium producer
MOSCOW, December 30 - RAPSI, Vladimir Yaduta. The Ontario Superior Court (Canada) has scheduled for January 24 its next hearing of a lawsuit filed by Khan Resources, a Canadian corporation involved in uranium exploration and development, against Russian uranium producer Atomredmetzoloto JSC (ARMZ), the Ontario Attorney Office told the Russian Legal Information Agency (RAPSI/rapsinews.com) on Friday.
Founded in 1991, Atomredmetzoloto JSC is one of the leaders in the world uranium mining industry. It is among the top five uranium mining companies by uranium output. ARMZ operates all uranium production assets in Russia and runs several projects in Kazakhstan.
Khan Resources embarked on a joint venture with ARMZ to develop a uranium mining area in Mongolia known as the Dornod fields. Khan Resources had a 58% share in the joint venture and ARMZ had a 21% share.
However, Khan Resources said ARMZ later sought to deprive Khan Resources of its interests in the fields by entering into another joint venture with the Mongolian government to develop the same land. ARMZ took steps to cancel Khan's mining license so that they could proceed with their new joint venture with the Mongolian government.
In November 2009 ARMZ commenced an ultimately unsuccessful hostile takeover bid for Khan Resources, which was rejected by the Canadian company.
Khan Resources also filed a suit against the Mongolian government with the international arbitration court in January 2011. Khan Resources said the international arbitration court is expected to consider in May 2012 whether the case falls within its jurisdiction, after which the lawsuit is expected to be considered on its merits.