The London Bullion Market Association (LBMA) has reinstated accreditation of a precious metals refinery in Kyrgyzstan, it said on Wednesday, allowing it to sell metal in the London market.
The LBMA had suspended accreditation of Kyrgyzaltyn JSC in September, citing the refinery's failure to meet required standards on responsible sourcing. Read full story
The association on Wednesday said it had closed an investigation initiated after the refinery failed to deliver an audit report for 2020.
"They gave us everything we needed and answered all our questions," said LBMA general counsel Sakhila Mirza.
LBMA accreditation is valuable to gold refiners because major banks that dominate precious metals trading tend to handle only metal from those on the association's "good delivery" list.
"As of Tuesday, 3 May 2022, Kyrgyzaltyn JSC was reinstated to LBMA's Good Delivery List (GDL)," the LBMA said.
"All gold and silver refined during the suspension is considered to be compliant with GDL rules and, therefore, Good Delivery."
The Kyrgyz government, which owns Kyrgyzaltyn, said it welcomed and appreciated the LBMA's decision.
"We have been able to demonstrate our strong commitment to the letter and spirit of our commitment to the LBMA," a government statement quoted Akylbek Japarov, chairman of the cabinet of ministers, as saying.
"We assure that our refinery will continue to fully and unconditionally comply with all its obligations in the LBMA."
Kyrgyzaltyn was embroiled in a dispute last year with Canadian miner Centerra Gold CG.TO, the Kumtor gold mine of which was seized by the Kyrgyz government in May 2021. Read full story
Centerra accused state-owned Kyrgyzaltyn, which is Centerra's largest shareholder, of involvement in the seizure and said it tried to make fraudulent payments.
Kyrgyzaltyn has denied wrongdoing and the Kyrgyz government accused Centerra of transgressions including environmental damage and corruption.
The LBMA said in June last year that it had begun a review of Kyrgyzaltyn JSC "in response to issues concerning delivery and the potential for fraud".
The dispute over the Kumtor gold mine was settled out of court in April.