Centerra Gold says no longer in control of Kumtor, suspends production guidance
(Kitco News) - Centerra Gold (TSX: CG) (NYSE: CGAU) announced today that the Kyrgyz Government effectively seized control of the Kumtor mine over the weekend of May 15 and 16, 2021 by sending Government authorities to the mine, KGC's office in Bishkek and the homes of several KGC employees.
Centerra said that consequently, it is no longer in control of the Kumtor mine and can no longer ensure the safety of the mine's employees or operations.
"Today's action by the Parliament of the Kyrgyz Republic is a clear violation of Centerra's and KGC'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 a statement.
However, the company said it remains willing and available to engage with the Government in a constructive dialogue on the matters it considers to be the subject of dispute. The company added that at the same time, the unjustified actions of the Government leave Centerra no choice but to continue to protect its interests and those of its shareholders and KGC through all legal means, including binding international arbitration and otherwise.
In light of today's resolution by the Kyrgyz Parliament, and in view of the fact that Centerra is no longer in control of the Kumtor mine as a result of the Kyrgyz Government's actions, the company said it is suspending its previously issued 2021 guidance and three-year outlook relating to the mine.
Centerra Gold is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties in North America, Asia and other markets worldwide and is one of the largest Western-based gold producers in Central Asia.