Centerra says Kyrgyzstan has 'effectively seized control' of key mine Ian Vandaelle, BNN Bloomberg VIDEO SIGN OUT The battle between Centerra Gold Inc. and the government of Kyrgyzstan over control of the companyâs flagship Kumtor mine in the country has escalated dramatically.
In a news release Monday, Centerra said Kyrgyzstan âeffectively seized controlâ of the mine over the weekend, a move the company said violates a decades-old operating agreement with the former Soviet republic.
âTodayâs action by the Parliament of the Kyrgyz Republic is a clear violation of Centerraâs and [Kumtor Gold Companyâs] rights in the Kumtor Mine as well as the governmentâs obligations to Centerra and KGC under longstanding investment agreements. This and other recent actions have no justification whatsoever under those agreements or applicable law,â the company said in the release.