Kyrgyzstan aborts plans to grab Centerra’s Kumtor mine, but wants more say

17.4.2015, 14:08 -

Centerra Gold’s Kumtor mine. (Image from archives)
Kyrgyzstan authorities said Friday the country has no intentions of nationalizing Centerra Gold’s (TSX:CG) Kumtor mine, but added they do want more representation on the Canadian miner’s board.
A Parliament’s ruling coalition representative told local news agency 24, the government simply “does not trust” Centerra’s current management.
For over two years the Central Asian nation and the Toronto-listed miner have been in talks on a deal to swap the government’s 32.7% stake in Centerra for half of a joint venture that would control the Kumtor gold mine.
But earlier this month the prime minister of the Kyrgyz Republic suggested a 50/50 joint venture with Centerra was not in the country’s interests.
The operation, which lies near the Chinese border at an altitude of 4,000 metres, has been a source of political tension in the impoverished country.
The vast open pit gold mine accounts for 60% of the nation’s industrial output and, according to Centerra, it is expected to produce 470,000-520,000 ounces at a all-in sustaining cost between $819-$908 per ounce this year.
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