AKIPRESS.COM - 
Gobi Coal & Energy announced it has been awarded US$11.5 million, plus costs and continuing interest and damages, by the Hong Kong International Arbitration Centre (HKIAC). The award was made in relation to a default by Mongolian national Jargalsaikhan Baz in repayment of three loans received from Gobi Coal in 2012 and 2013 to build mining supplies and power generation companies. The loans continue to accrue default interest at approximately US$100,000 per month, reported Finanz Nachrichten.
In an effort to generate cash flow and returns on investment, Gobi Coal turned its attention in 2012 and 2013 to ancillary business investments such as mining supplies and power generation in Mongolia.
Gobi Coal extended approximately $10 million in loans to Mongolia-based Baz Group's co-founder Jargalsaikhan Baz for creating large power generation and mining supply businesses focusing on the major Mongolia mines such as Rio Tinto's massive Oyu Tolgoi project. The loans were collateralized by family real estate assets in Mongolia owned jointly by Jargalsaikhan Baz, Chuulunbater Baz and Chuulunzorigt Baz (Baz loans). Following a protracted delay in mine development and investment activity throughout Mongolia, the Baz loans went into default beginning in October 2013 and Gobi Coal demanded full repayment, which has not been forthcoming.
Related news: