Kincora Copper set to solve mining licenses dispute with Mongolia
Mongolia-focused copper and gold miner Kincora Copper (CVE:KCC) said it is confident two of the licences revoked by the Mongolian government last year will be returned as a proposal to resolve the issue will be presented to the parliament during the ongoing session.
The proposition includes security of tenure and a mechanism to compensate stakeholders for the time lost due to the original judicial process and returning the licences to compliant licence holders, the miner said this week.
Kincora is one of 11 foreign investors whose mineral exploration licenses a Mongolian court declared void last year. The ruling came as it found the former head of the Mineral Resources Authority guilty of illegally approving them between 2008 and 2009.
Toronto-listed Kincora said in a statement the proposed resolution was a "win-win" to end the dispute over its two cancelled licenses, on which the company had to take a Cdn$7 million write-off last year.
"This case has had a major, negative impact on investor sentiment towards Mongolia. And the way in which the government responds to investor concerns about the revocation of licenses, we hope, will set a positive and visible precedent as to how future investors will be treated," Kincora Chief Executive Sam Spring said.
The company’s flagship Bronze Fox project was unaffected by the government’s move.