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Centerra says Kyrgyzstan has 'effectively seized control' of key mine


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

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