Mongolia has settled a dispute over an arbitration award in 2015 that required it to pay more than $100 million to Canadian company Khan Resources for revoking a uranium mining licence. The announcement came on the eve of a new Mongolian push to attract exploration interest.

A statement issued by Khan on March 7 said that “Khan and the Government of Mongolia had signed an agreement whereby in consideration of the payment to Khan of US$70 million on or before May 15, 2016, all outstanding matters pursuant to the international arbitration award received by Khan are resolved and terminated.

“The Government of Mongolia has further agreed it shall forthwith withdraw and discontinue the proceedings to annul the award before the Paris courts. Upon receipt of the consideration by Khan, any and all other proceedings shall be terminated by Khan including the certification application in the US District court in Washington.”

The Khan statement does not say how much the government paid.

Mongolian Finance Minister Bolor Bayarbaatbar said, “The settlement demonstrates the Government’s ongoing commitment to improving the investment climate.”

A Mongolian Government led delegation is in Toronto for the annual Prospectors & Developers Association of Canada conference, where the Mineral Resources Authority of Mongolia will pitch mining and infrastructure projects and auction off exploration licences.

“I think it helps their foreign investment case for Canadians and any foreign investor,” Business Council of Mongolia executive director Jim Dwyer told Reuters.

A Paris tribunal last March ordered Mongolia to pay Khan Resources damages for revoking the Dornod uranium mining licence in 2009 and transferring it to Russian partner ARMZ.

Mongolia refused to make the payment and Khan recently said it would press the Canadian government to suspend aid to the country if no settlement was reached for the $106 million, including interest, it was owed as of February.

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