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Australian lawyer held in Mongolia

AN AUSTRALIAN lawyer acting as chief legal counsel for Vancouver-based miner SouthGobi Resources ...

Staff Reporter

Australian Sarah Armstrong, 32, was reportedly arrested on Friday as she boarded a plane bound for her home in Hong Kong.

Government officials have confirmed the coal miner’s legal representative was not charged with any crime – but the arrest comes just three months after she alleged Mongolia attempted to seize several hundred million dollars’ worth of coal from the miner.

The West Australian connected Armstrong’s arrest to a notice she filed for a SouthGobi affiliate, which triggered international arbitration proceedings against the Mongolian government.

The newspaper quoted a source close to the company, who said Armstrong’s arrest was “retaliation”

Armstrong, who has worked for SouthGobi for more than two years, had claimed a Mongolian official asked her for bribes.

Though no formal detention or charges have been asserted against Armstrong, the company said it feared for her safety, according to the newspaper.

SouthGobi released a short statement saying neither it, nor its employees, had been charged with any offence.

“SouthGobi continues to cooperate with the Mongolian government agencies, including the Independent Authority Against Corruption, in their ongoing investigations,” the company said.

Meanwhile, Australian Foreign Minister Bob Carr commented on the case this morning.

“She hasn't been detained, hasn't been arrested. Her passport hasn't been taken from her,” he said on ABC Radio.

“Our relationship with Mongolia is very good and I think we'll have good access in seeking to resolve this case.”

Carr said Armstrong was receiving consular support. Consul-General David Lawson has met with her and is ready to accompany her to any meetings with authorities.

“But the authorities in Ulan Baatar are seeking to interview her further,” he said.

“Not, I'm advised, about any allegations against her, but about a complex matter between the company she works for, the resources authority of Mongolia and the Mongolia anti-corruption authority.”

Oyu Tolgoi owner Turquoise Hill Resources, which is controlled by Rio Tinto, owns 57.6% of SouthGobi.

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