IMF Calls for Immediate Solution to Kumtor Gold Mine Dispute

SEATTLE (Scrap Monster): The International Monetary Fund (IMF) has called for speedy and transparent settlement of the ongoing dispute between Centerra Gold and Kyrgyzstan government over the Kumtor Gold Mine.

The international organization reminded that its earlier economic forecasts of 3.8% and 6.4% in 2021 and 2022 respectively for the country is much dependent on a stable gold production. A resolution to the dispute is extremely critical to ensure uninterrupted gold supply. The body highlighted the need for political stability and a business friendly environment for businesses to thrive in the country. The observations are based upon IMF’s Article IV assessment of the Central Asian nation.

The controversial gold mine is currently under full control of the Kyrgyzstan authorities. The government had taken temporary control over the mine, citing environmental and safety violations. The company is being alleged for dumping more than a million tonnes of waste rock, thereby causing damage to glaciers.

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Meantime, the subsidiaries Kumtor Gold Company and Kumtor Operating Company had filed for Chapter 11 bankruptcy in the U.S. Court. At the same time, it has made clear that it is willing and available for a constructive dialogue with the Kyrgyzstan authorities.