Pay the award or foreign investments will go somewhere elseThe Mongolian government will honor a court decision that awarded about $100 million to Khan Resources Inc., a move that could further ease tensions with foreign investors looking for signs of stability in the country. “There is a requirement to pay and the government will carry out its obligation,” Saikhanbileg Chimed, Mongolia’s 46- year-old Prime Minister, said in a June 26 interview in New York. “We’re not ignoring, we’re respecting. We will comply.” The Khan Resources case is seen as a test for a government trying to rebuild an economy where the growth rate slowed to 7.8 percent last year, after cresting at 17.3 percent in 2011, amid weaker commodity prices and high-profile disputes with foreign investors. The prime minister’s conciliatory tone following failed meetings to resolve the dispute, created when Mongolia stripped Khan of uranium mining licenses in 2009. The Ministry of Justice had said in March it would seek to nullify the award. Saikhanbileg’s promise to pay Khan Resources sent shares of the Toronto-listed company soaring 56 percent to 70 Canadian cents on Friday. Khan hasn’t received any direct communication from Mongolia on a resolution, the company said in a statement. The Khan case is one of four international arbitration cases facing Mongolia, which is “not a big deal” compared with other countries dealing with hundreds of such cases, said Saikhanbileg. The 46-year-old premier, a George Washington School of Law alumnus, said the Khan case is isolated and in the long run will serve to improve Mongolia’s business climate and remedy laws that hinder investment. “Every investor is looking for stability and predictability,” the PM said. ©2015 Bloomberg News Home Analysis Political economy Back to top You might also like Rio Tinto to invest in Oyu Tolgoi this year - Mineweb Rio Tinto to invest in Oyu Tolgoi this year - Mineweb 20 Richest People Of All-Time 20 Richest People Of All-Time (My 1st Class Life) Five mining companies ahead of the curve - Mineweb Five mining companies ahead of the curve - Mineweb Coal of Africa's half a billion-dollar baby - Mineweb Coal of Africa's half a billion-dollar baby - Mineweb Rio Tinto to invest in Oyu Tolgoi this year - Mineweb 20 Richest People Of All-Time Five mining companies ahead of the curve - Mineweb Coal of Africa's half a billion-dollar baby - Mineweb Recommended by No comments so far Leave a Reply Name * Email * Website Notify me on new comments on this story OR tell me of new comments without me commenting. Finding Alturas: Inside Barrick’s gold discovery Bank of China joins gold price benchmark Chinese equity firm enters SA resource market at 'a steal' Red rag to gold bulls – JPMorgan added to LBMA Gold Price banks UPDATE: No Chinese banks in new London Gold Fixing system – yet Verification Image Mineweb Masthead .