The Arbitration Court commenced the proceedings of the controversy between the Khan Resources Inc. and the Government of Mongolia for actions taken by the Government of Mongolia to expropriate its uranium mining license in Dornod aimag on May 14-15, 2012 in Paris, the French Republic.

The State Secretary of the Ministry of Justice and Home Affairs, G.Bayasgalan and the Deputy Director of the “Mon-Atom” LLC G.Tsogtsaikhan have attended the court hearing. The court discussed the legitimacy of the claim laid by the Khan Resources Inc. and also if the case is subject to an International Court hearing. The court resolution will be drawn by September, 2012. The Khan Resources Inc. is claiming 200 million USD as compensation from the Government of Mongolia. 

If the court finds the Mongolian Government as guilty further appellate court hearings will be placed. The Arbitration court will make its final decision in November, 2013. Hogan Lovells International LLP is representing the Government of Mongolia at the court where the lawyers have introduced articles of Mineral Resources Law of Mongolia forced in 2007 and Nuclear Energy Law of Mongolia forced in 2009 claiming that the Khan Resources Inc. has seriously violated the Mongolian law, caused damage to the nature and environment and failed to carry mine rehabilitation actions, informed the  Department of Foreign Cooperation of the Ministry of Justice and Home Affairs of Mongolia.