Photo by: Reuters
Toronto-based Centerra Gold says it is in a process of resolving disputes related to its Kumtor gold mine, in Kyrgyz Republic, and the government’s seizure of control of the mine in May last year.
The mine has been a source of financial and environmental disagreements for years, with the government having taken control of the mine to "address environmental and safety violations".
Centerra, however, believes the takeover is wrongful and illegal.
Further to statements in the Kyrgyz media regarding the potential negotiated transfer of the Kumtor mine to the Kyrgyz Republic, Centerra expects the framework for an arising resolution to involve Centerra receiving the 26.1% in Centerra common shares held by Kyrgyzaltyn JSC, which is owned by the Kyrgyz Republic.
Upon receipt, Centerra will cancel the shares surrendered by Kyrgyzaltyn JSC.
The company also anticipates the Kyrgyz Republic receiving, and assuming all responsibility for, the company’s two Kyrgyz subsidiaries and the Kumtor mine.
A resolution would also involve Centerra paying a cash amount equal to the net amount of the three dividends paid by it in 2021, which Kyrgyzaltyn JSC did not receive as a result of the seizure of the mine, and certain other financial consideration associated with the settlement of inter-company balances between Centerra and its two Kyrgyz subsidiaries.
Negotiations are ongoing.