Uranium developer Khan Resources has expressed worries on reports Mongolia is to place further regulation on uranium mining there.

VANCOUVER, British Columbia (Reuters) - 

Canadian miner Khan Resources Inc (KRI) said on Wednesday it is concerned about a surprise move by Mongolia to regulate uranium mining and potentially boost the government's ownership stake in mining assets.

Khan said it was still trying to confirm reports that Mongolian lawmakers approved the new mining measures last week and that, if signed into law, would take effect on Aug. 15.

The small Toronto-based company said it supports Mongolia's attempts to develop its uranium mining regulations, but worries about how this measure was developed and about provisions that could let the government increase its ownership stake in uranium assets.

Khan said in March it expects initial capital costs for its Dornod uranium project in northeastern Mongolia to be about $333 million and estimates the project to be completed in 36 months.

Another Canadian miner, Ivanhoe Mines Ltd (IVN.), said last week it expected to have more talks with Mongolia on developing its flagship Oyu Tolgoi copper and gold deposit, a move that many investors worry could further delay the project.