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The gold miner and the Kyrgyz authorities have clashed over monetary and environmental points associated to the mine for years. Their standoff took a flip for the more serious in Could 2021, when the nation took management of the mine, alleging that the corporate was working it in a approach that was detrimental to each the setting and close by communities.
Centerra, which has denied all of the allegations, kicked off arbitration shortly after and sued former director Tengiz Bolturuk, claiming that the twin Canadian and Kyrgyz citizen had secretly co-operated to stage the expropriation.
The corporate had laid out a framework earlier this 12 months for resolving the dispute outdoors of courtroom. In it, Centerra proposed to obtain about 26.1% of its frequent inventory held by native gold refiner Kyrgyzaltyn JSC. It additionally stated the state ought to assume all accountability for the corporate’s two Kyrgyz subsidiaries in addition to the large mine.
Kumtor, which accounts for a fifth of the ex-Soviet nation’s whole industrial output, was the most important of Centerra’s gold mines, contributing to greater than 50% of the corporate’s whole output.
The operation can be essential to Kyrgyzstan, as it’s the nation’s largest private-sector employer, taxpayer, and principal overseas funding. Between 1997 and 2020, it produced greater than 13.2 million ounces of gold, with final 12 months’s output barely over 556,000 ounces.
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