TORONTO (miningweekly.com) – Toronto-listed gold miner Centerra Gold said it produced 387 076 oz of gold during 2012, which was 40% less year-on-year as a result of reduced output at its Kumtor mine, in the Kyrgyz Republic, owing to unexpected ice movement from a glacier in the openpit.

The miner produced a total of 642 380 oz in 2011.

“The year proved to be a challenging one beginning with the unexpected acceleration of ice and waste into the central pit, which resulted in a reduction of our production forecast for the year,” CEO Ian Atkinson said in a statement.

The company’s production comprised 315 238 oz of gold from the high-altitude Kumtor mine, and 71 838 oz from the Boroo mine, located in Mongolia.

During the fourth quarter of 2012, consolidated gold production was 219 316 oz, including 189 438 oz of gold produced by the Kumtor mine and 29 878 oz of gold produced by the Boroo mine. This was an improvement when compared with the total fourth-quarter production of 151 562 oz of gold a year earlier.

Centerra’s capital expenditure for 2013, excluding capitalised stripping, is estimated to be $107-million, including $75-million of sustaining capital and $32-million of growth capital.

The company in November last year announced the expansion of the openpit at Kumtor, which resulted in a significant increase in value of the Kumtor deposit and included a 58% increase in proven and probable reserves to a total of 9.7-million contained ounces. The new plan is expected to deliver consistent yearly gold production averaging 650 000 oz/y for next ten years.

The company in December said it had received legal claims from the government totalling $152-million for alleged environmental damages at its flagship Kumtor mine.

The company said its subsidiary had received five claims from the State Inspectorate Office for Environmental and Technical Safety (SEITS), including a claim for about $142-million for alleged damages resulting from the manner in which it had placed waste rock on dumps from mining operations as far back as 2000.

At the time, Centerra said that, even though it has benefited from a “close and constructive” dialogue with the Kyrgyz authorities over many years, no assurances could be given that the claims and the directives issued by SEITS and the outcome of the State Commission review could be resolved without a “material impact” on the company and further claims from Kyrgyz authorities arising from the review might also be forthcoming.

The company’s stock rose 3.94% on the Toronto bourse to C$9.75 apiece on Tuesday morning.