HomeNewsCanadian miner Centerra says Kyrgyz government taking control of gold mine

Canadian miner Centerra says Kyrgyz government taking control of gold mine

CALGARY – Canadian miner Centerra Gold Inc. says the Kyrgyz Republic is transferring to put in exterior administration at its Kumtor gold mine within the Central Asian nation after “successfully seizing management” of the operation over the weekend.

In a information launch, it warns of the potential for a fabric impression or lack of its total funding within the mine, which produced 90,169 ounces of gold within the first quarter.

Centerra says it’s now not in command of the gold mine and may now not guarantee the security of the mine’s staff or operations, although all key security, monitoring and operational techniques on the mine had been functioning correctly earlier than management was misplaced.

It says it has suspended the entry of all native Kumtor Gold Co. staff within the Kyrgyz Republic to its international IT techniques to stop any unauthorized intrusions.

Ongoing disagreements with the Kyrgyz authorities resulted in Centerra reporting a collection of developments final week that it stated had been a part of a concerted effort to coerce it to surrender financial worth or possession of the Kumtor mine or to falsely justify a nationalization of the mine.

It stated Sunday it had initiated binding arbitration in opposition to the federal government to stop it from adopting a brand new regulation permitting it to nominate new administration, or pursuing not too long ago procured fines and tax claims in opposition to the mine which violate its funding agreements.

“Immediately’s motion by the parliament of the Kyrgyz Republic is a transparent violation of Centerra’s and KGC’s rights within the Kumtor mine in addition to the federal government’s obligations to Centerra and KGC underneath longstanding funding agreements,” Centerra stated in an announcement Monday.

“This and different current actions haven’t any justification in anyway underneath these agreements or relevant regulation.”

This report by The Canadian Press was first printed Might 17, 2021.

Firms on this story: (TSX:CG)



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