Interview with the NEA official G.Bayasgalan

http://ubpost.mongolnews.mn/index.php?option=com_content&task=view&id=5103&Itemid=40

Written by P.Shinebayar

Tuesday, July 27, 2010.

It has not been a long time since the Administrative Court of Mongolia hears the case between the Nuclear Energy Agency (NEA) and the Canada’s Khan Resources Inc. regarding cancellation of the Khan’s unit Khan Mongolia licenses to explore uranium in Dornod Province. G.Bayasgalan, head of the NEA’s Department of Nuclear Materials, gives some clarifications on issues regarding the case and on the exploration of uranium. - There are news past few days that Khan Resources won the court case and its unit Khan Mongolia is set to commence the prospecting and exploration of uranium in Dornod Province. What would you say about that? - First of all, I would like to responsibly state that there are some misleading news and information regarding this court case. People think that the NEA cancelled the Khan’s license before its expiration term, which is a wrong understanding. Indeed, this matter is not connected to the term of Khan’s license. The Khan Resource’s unit Khan Mongolia filed the case to the Metropolitan Administrative Court (MAC) against the NEA, saying that the NEA’s decision and statement regarding the Khan’s license is the infringement of law. The MAC’s hearing of the case was not about the issuance of special license to Khan Resources but it was about lawful grounds for the decision passed by the NEA chief. The MAC has decided that the right to issue or not issue the license to the Khan Resources based on renewed registration of the license belongs to the NEA. I must state that there is no court decision made that Khan Resources’s special license is not subject to the cancellation. - It is said that Khan Resources is about to sue against the NEA to international court of arbitration? - Our organization (NEA) cooperates with several international humanitarian organizations. If the Khan Resources do so, we, the NEA, will also take own actions through own judicial institutions. - There have been many talks in recent months about the construction of a nuclear power plant in Mongolia. When can it happen in reality? - Our country believes it is appropriate to consume nuclear energy in the country to meet requirements including the supply of energy in a reliable and cheaper ways and the reduction of air pollution. The country’s Integrated Development Policy based on the Millennium Development Goals says that 2021 will be the starting year to commence the consumption of nuclear energy for peaceful purposes. Based on the Policy, the Government started to take actions according to its plan of actions. - What is the development of the matter regarding the incorporation of “Dornod Uranium” company jointly with Russian? The NEA must be the agency to issue the special license to this company if it is established. Will the exploration license or the prospecting license be issued first? - I hope the Cabinet of Ministers will discuss this matter in the nearest future. We have introduced the amount of registered capital and other proposals to the Government, including the proposals from Russian side. The working group headed by the Foreign Minister G.Zandanshatar might introduce the issue of the joint company soon. It is too early to talk about the special license because the Company is yet to be established. We will sign investment agreement with Russian side according the law and only after that we can talk about the special license.