Summary

I. INTRODUCTION

A. THE PARTIES

1. The claimants in this arbitration are: (1) China Heilongjiang International Economic & Technical Cooperative Corp ("China Heilongjiang"), (2) Beijing Shougang Mining Investment Company Ltd ("Beijing Shougang"), and (3) Qinhuangdaoshi Qinlong International Industrial Co. Ltd ("Qinlong") (together, the "Claimants"). China Heilongjiang and Beijing Shougang are State- owned corporations established in accordance with the laws of the Peoples' Republic of China (the "PRC"). Qinlong is a limited liability company, also established in accordance with the laws of the PRC.

2. The Claimants are represented in these proceedings by Mr. Peter Turner QC of Freshfields Bruckhaus Deringer LLP, 2 rue Paul Cézanne, Paris 75008, France; by Messrs. John Choong and Jonathan Wong of Freshfields Bruckhaus Deringer LLP, 11th Floor, Two Exchange Square, Hong Kong; and by Ms. Belinda McRae of 20 Essex Street Chambers, 20 Essex St., London, WC2R 3AL, United Kingdom.

3. The respondent in this arbitration is the Government of Mongolia (the "Government," "Mongolia," or the "Respondent").

4. The Respondent is represented in these proceedings by Mr. Gungaa Bayasgalan, State Secretary, Ministry of Justice, Government Building 5, Ulaanbaatar 210646, Mongolia; and by Mr. Michael D. Nolan, Ms. Elitza Popova-Talty, and Mr. Kamel Aitelaj of Milbank, Tweed, Hadley & McCloy LLP, 1850 K St NW # 1100, Washington D.C. 20006, United States.

B. BACKGROUND OF THE DISPUTE

5. A dispute has arisen between the Claimants and the Respondent in respect of which the Claimants have commenced arbitration pursuant to the Agreement between the Government of the Mongolian People's Republic and the Government of the People's Republic of China concerning the Encouragement and Reciprocal Protection of Investments signed on 26 August 1991 (the "Treaty").

6. The Parties' dispute concerns the alleged expropriation by Mongolia in breach of Article 4(1) of the Treaty of a mining licence (the "939A Licence") for the deposit of iron ore located at Tumurtei in Khuder soum (a district of the Selenge aimag (province)) in Mongolia. Prior to its alleged expropriation, the 939A Licence was held by Tumurtei Khuder LLC ("Tumurtei Khuder"), a Mongolian corporation in which the Claimants held 70 percent ownership.

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IX. DISPOSITIF

477. For the reasons set out above, the Tribunal:
(a) Rejects the Respondent's objection to jurisdiction ratione personae;
(b) Upholds the Respondent's objection to jurisdiction ratione materiae;
(c) Finds that it has no jurisdiction to entertain the Claimants' claims;
(d) Finds that it has no jurisdiction to entertain the Respondent's counter-claims;
(e) Decides that the Parties shall each bear their own costs of legal representation and shall bear the costs of the arbitration as set out above and in Article 8, paragraph 8 of the Treaty;
(f) Orders the Respondent to pay to the PCA, within 30 days from the date of this Award, US$45,367.57 as the outstanding fees and expenses of the arbitrator appointed by the Respondent, in accordance with Article 8, paragraph 8 of the Treaty.