Press Release: The Law Suit Completion Between World Wide Minerals Ltd and Kazatomprom

On August 8, 2002 the U.S. Court of Appeals for the District of Columbia announced its final decision on the claims dismissal filed by a Canadian company, World Wide Minerals Ltd, against National Atomic Company Kazatomprom. Kazatomprom initiated a legal investigation at the higher legal authority of USA to put an end these drawn out proceedings. Decision on the claims dismissal against Kazatomprom was made final and is not to be a subject to appeal. During the legal proceedings, Kazatomprom represented not only its own interests, but also those of the Republic of Kazakhstan and State Committee of State Property Management.

The beginning of the case dates back the 1996 Management Agreement between Kazakhstan and World Wide Minerals Ltd (WWM) under which the Canadian company assumed management responsibilities for the northern uranium-mining complex and Tselinnyi Mining Chemical Plant (TMCP). In 1997, World Wide applied to the Kazakhstan government for the license to export uranium to the U.S.A but was refused based on the fact that the exclusive rights to sell the uranium were given to another American company, Nukem Inc.

As a result of its inability to get the export license, WWM suspended production citing to non-sales of the mined uranium. Kazakhstan had to undertake the management on the northern uranium- mining complex and canceled the agreement due to WWM impairment of obligations and difficult financial and economic status of TMCP. The Kazakhstan government resolution #213 issued in July 30, 1997 imposed the operational management right on the state holding company Tselinnyi Mining Chemical Plant to Kazatomprom.

In May 13, 1998 WWM and its subsidiaries filed claims against Kazakhstan, State Committee of State Property Management and Kazatomprom in U.S. District Court. The raised claims contained mainly unlawful denial of the uranium export license and subsequently illegal nationalization of WWM assets in Kazakhstan. The claims were amounted to US$29 millions. The U.S. District Court dismissed the claims against Kazakhstan and its instrumentalities citing the Doctrine restricting 'the adjudication of a claim when the resolution of case is based on legitimacy or illegitimacy of the official action made by the foreign sovereign state on its own territory'. According to the court judgment, the decision to grant or not to grant the export license and nationalize the property is a sovereign action of Kazakhstan based on internal laws and regulations of the Republic.

Afterwards, the Canadians applied to the U.S. Court three more times with complaints that the amount of which had been raised to US$1 billion, which were also dismissed under the Doctrine.

In November 27, 2001 Kazatomprom applied to the U.S. Court of Appeals to confirm the WWM claims dismissal. In August 8, 2002 the U.S. Court of Appeals pronounced a final judgment of the case dismissal in favor of Kazakhstan and Kazatomprom.