Jan 4, 2022
Centerra outlines expected settlement terms with Kyrgyz
The Canadian Press
Centerra Gold Inc. has outlined its expected terms to settle a dispute with the Kyrgyz Republic over a gold mine the country seized last year.
The government took over the Kumtor mine in May 2021 citing environmental and safety concerns, though the country has also long accused the company of not paying enough taxes.
The Toronto-based gold miner says it is in ongoing negotiations with government representatives and expects any settlement to include Centerra receiving the 26.1 per cent of its shares held by Kyrgyzaltyn JSC, a state-owned company.
Centerra says it also expects the Kyrgyz Republic to take all responsibility for the Kumtor mine and to release the company of any claims and to stop all legal proceedings.
It says as part of a settlement it will pay the cash dividends to the Kyrgyz company that it did not pay last year.
Centerra reported a US$926.4 million loss last August on the change of control of Kumtor, while the company continues to operate mines in British Columbia and Turkey.
The government took over the Kumtor mine in May 2021 citing environmental and safety concerns, though the country has also long accused the company of not paying enough taxes.
The Toronto-based gold miner says it is in ongoing negotiations with government representatives and expects any settlement to include Centerra receiving the 26.1 per cent of its shares held by Kyrgyzaltyn JSC, a state-owned company.
Centerra says it also expects the Kyrgyz Republic to take all responsibility for the Kumtor mine and to release the company of any claims and to stop all legal proceedings.
It says as part of a settlement it will pay the cash dividends to the Kyrgyz company that it did not pay last year.
Centerra reported a US$926.4 million loss last August on the change of control of Kumtor, while the company continues to operate mines in British Columbia and Turkey.
