Centerra, Kyrgyz Gov’t delay completion of deal over Kumtor mine
Kumtor mine, 100% owned by Centerra through its subsidiary Kumtor Gold, is located in the southern Tien Shan Metallogenic belt.
Canada’s Centerra Gold has once again agreed to extend the deadline for completion of all conditions included in a deal it signed in September with the Kyrgyz government, ending long-dragged environmental and economic disputes over the firm’s Kumtor gold mine, the country’s largest.
While the Toronto-based miner did not provide much detail about the reasons for the deadline extension, the fifth one this year, it said the date had been moved from August 24 to Nov. 2
The announcement comes two months after MINING.com reported the country’s new Prime Minister, Muhammadkaliy Abylgaziev, was reviewing the agreement signed by his predecessor, adding his administration planned to submit to parliament its own proposals regarding the document. The authority, however, didn’t elaborate on when or how radical those suggested changes might be.
The news also follows recent charges of corruption against former Prime Minister Sapar Isakov, who signed the strategic agreement with Centerra last year — a development local media said it could jeopardize the legitimacy of the pact.
When and if finally signed, the wide-ranging arrangement would end a long-drawn-out dispute that crippled investor confidence in the impoverished Central Asian country and prevented Centerra from partaking in any profit from its majority-held and majority-operated Kumtor mine, resulting in the Canadian company filing for international arbitration.
The settlement would also end mutual lawsuits and force the Kyrgyz government to drop all environmental claims against Centerra and its subsidiary. In return, the miner would increase its annual environmental contributions.
Kumtor, which lies near the Chinese border at an altitude of 4,000 metres, has produced around 11m ounces since inception and remaining reserves are pegged at 5.6m ounces.
The Kyrgyz government owns just under a third of Kumtor and the mine contributes nearly 10% of the country’s GDP.
- UK Mineco Group marks successful 2018 mining and business results
- European Metals secures offer from Krupa to acquire Cinovec project
- Activists are campaigning against uranium mining in Spain
- BlueJay Mining PLC upgrades resource for its Greenland Dundas project as it presses ahead with PFS
- Greek Court Acquits 21 Environmental Defenders in Eldorado Gold Trial
- Euromax gold Ilovica Mine in Macedonia is spreading fear of heavy metals reveals local environment group
- Refractory ore trouble Russian gold miners
- Lithium and rare earth elements discovered in Mongolia Khuut mine
- Albania chromium mines face closure
- Bosnia coal mines to increase production in 2016
- Flinders Resources Sweden graphite Woxna project to be developed with Chinese partners
- Orion mine finance, the owner of Macedonia Sasa lead zinc optimistic in commodities market
- Greenland Resources Announces Updated Concept Study Results for Its Malmbjerg Molybdenum Project
- Bank of China to participate in EBRD syndicated loan for Shalkiya mine expansion project
- Russia’s Polyus big step closer to building world’s largest new gold mine