Centerra Gold battles Kyrgyz bureaucracy

By David Trilling
EURASIANET.org

Kyrgyzstan’s largest industrial enterprise, the Canadian-operated Kumtor gold mine, says it will stop production next week if the Kyrgyz government does not approve the necessary work permits. The announcement, which sent the company’s stock plummeting to its lowest point this year, comes less than a month after a rancorous board meeting where Kyrgyz representatives complained their Canadian partners ignored their decisive vote on the company’s management structure.

Toronto-listed Centerra Gold, which is one-third owned by Kyrgyzaltyn, the Kyrgyz government’s state-owned gold company, says its has worked since late 2013 to secure the necessary mining and environmental permits and approval of its 2014 action plan.

“Unfortunately, this year, despite repeated submissions and discussions with senior officials, such approvals and permits have not been provided. The continuing absence of such approval and permits creates significant uncertainty and risks for Centerra and its employees,” the company said in a June 2 statement.

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