Centerra Gold Replied to Seizure of Kumtor Gold Mine
Mining News | 2021-05-19 13:27:58
The joint statement also expressed disappointment in not allowing for a transparent resolution of the dispute by the parties working together.
By Paul Ploumis
SEATTLE (Scrap Monster): Canadian miner Centerra Gold initiated a series of measures to protect investor rights after Krygyztan officials on Monday seized control of its Kumtor Gold Mine. The company is already in touch with Canadian and English authorities, who have offered full support, it said.
A joint statement issued by the Canadian Foreign Affairs Minister Marc Garneau and International Trade Minister Mary Ng said that they are disappointed with the Parliament decision to move forward with the imposition of external management on the Kumtor Gold Company. As a significant investment partner of that country, Canada is extremely concerned about continued developments in Krygyzstan’s mining sector, it said. The joint statement also expressed disappointment in not allowing for a transparent resolution of the dispute by the parties working together.
Meantime, the European Bank for Reconstruction and Development (EBRD) said that the seizure of the mine has put in doubt the commitment of the Kyrgyz Republic to stand by its obligations to its international partners and foreign investors. Furthermore, it would also send a message to the outside world that the country is not at all a secure place for investors to operate, EBRD added.
Centerra Gold has already accepted the resignation of Krygyzstan’s nominee from the board with immediate effect.
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