The Chinese companies file against the Mongolian Government
Mongolian Government has case against Mr. Paushok, director of Golden East Mongolia, at the International Arbitrage court. But, in April 2010, three Chinese companies, Xinhuang Aoshi Xinglong International Industrial, China Heilongjiang International and Technical Cooperative Corp. and Beijing Shougang Mining Investment, filed against the Mongolian Government regarding their investment in Tumurtei deposit, Mongolia, to the International Arbitrage Court.
The claim stated that the Mongolian Government breached several International Agreement and domestic laws, such as Agreement on Protection and Promotion Investment between Mongolia and People’s Republic of China of 1991, the Foreign Investment Law, adopted in 1993 and amended in 2002.
The Mongolian Government canceled license A 939 of “Tumurtei Khuder” Co.,Ltd (Iron Ore), invested by Xinhuang Aoshi Xinglong International Industrial, China Heilongjiang International and Technical Cooperative Corp. and Beijing Shougang Mining Investment, based on the effective laws and regulations. Upon cancellation of the license, “Tumurtei Khuder” Co.,Ltd lost its right to own and manage its mined iron ore also. The license was transferred to Darkhan Metallurgy Factory, a state – owned company.
In the article 8 of Agreement on Protection and Promotion Investment between Mongolia and People’s Republic of China of 1991, it said that “If any dispute occurs in the territory of Mongolia regarding the Chinese investment, parties shall seek reconcilement way settling dispute. If fails to reach common agreement on dispute within 6 month of reconcilement, any party can file for the ad hoc arbitrage.”
The Government of Mongolia has been negotiating with the Chinese counterpart, based on the reconcilement therefore, Chinese side filed to the court. It is still confidential about the requested compensation for the damage.
Chinese companies hired Freshfields Bruckhaus Deringer as its lawyer. Some sources inform that this firm has become top law firm in China. But the Mongolian Government law firm is not decided yet, but the Mongolian Government most likely to hire its previous partners (Milbank, Tweed, Hadley & McCloy), worked on the case of Golden East Mongolia.
The claim stated that the Mongolian Government breached several International Agreement and domestic laws, such as Agreement on Protection and Promotion Investment between Mongolia and People’s Republic of China of 1991, the Foreign Investment Law, adopted in 1993 and amended in 2002.
The Mongolian Government canceled license A 939 of “Tumurtei Khuder” Co.,Ltd (Iron Ore), invested by Xinhuang Aoshi Xinglong International Industrial, China Heilongjiang International and Technical Cooperative Corp. and Beijing Shougang Mining Investment, based on the effective laws and regulations. Upon cancellation of the license, “Tumurtei Khuder” Co.,Ltd lost its right to own and manage its mined iron ore also. The license was transferred to Darkhan Metallurgy Factory, a state – owned company.
In the article 8 of Agreement on Protection and Promotion Investment between Mongolia and People’s Republic of China of 1991, it said that “If any dispute occurs in the territory of Mongolia regarding the Chinese investment, parties shall seek reconcilement way settling dispute. If fails to reach common agreement on dispute within 6 month of reconcilement, any party can file for the ad hoc arbitrage.”
The Government of Mongolia has been negotiating with the Chinese counterpart, based on the reconcilement therefore, Chinese side filed to the court. It is still confidential about the requested compensation for the damage.
Chinese companies hired Freshfields Bruckhaus Deringer as its lawyer. Some sources inform that this firm has become top law firm in China. But the Mongolian Government law firm is not decided yet, but the Mongolian Government most likely to hire its previous partners (Milbank, Tweed, Hadley & McCloy), worked on the case of Golden East Mongolia.
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