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.
Kyrgyzstan’s government has reached yet another possible restructuring plan with Toronto-listed Centerra Gold, which owns the country’s largest and most profitable mine.
Kyrgyzstan’s lawmakers overwhelmingly rejected Wednesday a new deal to settle Bishek’s long-standing dispute with the Canadian operator of the country’s biggest goldmine.
Kumtor Operating Company, which is owned by Toronto-listed Centerra Gold, said the company has been “constantly receiving threats of possible road blocks in the event of non-compliance with various kinds of demands.”
As officials in Kyrgyzstan prepare to negotiate with their country’s largest investor in Bishkek this week, new details are emerging about how the Kyrgyz government wants to restructure the agreement covering operations at the country’s flagship gold mine.
Kyrgyzstan’s efforts to attract investors by auctioning off mining licenses, starting with the country’s second-largest gold deposit, have run into problems – both self-inflicted and beyond authorities’ control.
Nationalists threaten to return to the streets to topple another Kyrgyzstan government unless it expropriates the Centerra’s Kumtor gold mine.
Kyrgyzstan has used claims of environmental damage at the country’s largest, most lucrative gold mine, Kumtor, to argue for a new agreement with the company operating the mine, Toronto-based Centerra Gold.
Getting gold out of Kumtor is a pain, and not because of the high remoteness. Rather, Kyrgyzstan’s troubled politics holds back Kumtor and helps explain why foreign-run mines are so rare
A legal dispute between the Kyrgyzstan government and Centerra Gold has entered a decisive stage for both sides after the Kyrgyz parliament instructed the government either to renegotiate a 2009 deal with the Canadian mining company.