Canadian miner outlines terms of proposed environmental settlement with Asian nation that would remove cloud over massive Kumtor gold mine.
Centerra Gold Mining News
The arbitrator has sided with miner, allowing it to move forward with the case against the Central Asian country.
The decision means the $210 million arbitration against the Kyrgyz Republic will advance to the merits stage, the Canadian junior said.
Toronto-based Centerra Gold has been granted the necessary permits and approvals for its 2017 mine plan in Kyrgyzstan.
Centerra Gold, a Toronto-based Canadian company, appears in the news regarding its troubles in Kyrgyzstan and its operations at the Kumtor gold mine.
Shares fell after the miner said it would suspend dividends until further notice, due to current restrictions to funds held at its Kyrgyz Republic subsidiary, Kumtor Gold.
The miner increased gold output guidance for the mine to 520,000 to 560,000 ounces and lowered all-in sustaining cost forecast to $666 – $718 per ounce.
With the deal Centerra gets its hands on Mount Milligan, a large mine in British Columbia and reduces its reliance on Kumtor mine, in Kyrgyzstan, for cash flow.
Thompson Creek Metals (TSX:TCM) will soon start operating its Mount Milligan copper-gold mine in British Columbia under a new name.
Kumtor mine is the country's largest private sector employer and taxpayer and Centerra’s main gold producing mine.
The company is yet to receive an approval of its Kumtor’s 2016 mine plan, which it requires to continue operating the mine beyond June 30.
President Almazbek Atambayev has ordered state prosecutors to review the legality of agreements signed with the company in 2003-2004 and 2009.
Toronto-based Centerra says new criminal probe of managers at its giant gold mine bars expats from leaving the Central Asian country.
The company said the arbitration proceedings will be held at Stockholm and Sweden, and that they will be conducted under the UNCITRAL rules.
Fresh string of penalties and fees are one of the latest signs of renewed tensions between the Kyrgyzstan government and the Canadian miner.
Ruling is one of the latest signs of renewed tensions between the Kyrgyzstan government and the miner, which have been locked in a bitter dispute over profit sharing for years.
The company's gold production for the year is expected to be between 480,000 to 530,000 ounces.
They are looking into a dividend paid by Kumtor to Centerra in 2013, which the miner says complied with the country's laws and 2009 agreements governing the project.
OMAS will use the Facility to finance a substantial portion of the construction, development and operation of the Öksüt gold mine and its related infrastructure in the Kayseri region of central Turkey.
The Company has used a gold price of $1,200 per ounce as the basis for its reserve estimates.
The nation has struggled to manage its resources leading to disagreements and protests of mining operations.
After a five-year delay, the country’s parliament has finally approved Centerra’s plans to mine the Gatsuurt gold deposit.
Figures include 520,695 ounces of gold from the Kumtor mine, in the Kyrgyz Republic, and 16,226 ounces of gold from the Boroo mine, in Mongolia.
The incident is Centerra Gold's second brush with Kyrgyzstan authorities in recent months.
The country's government said the current agreement "ran counter to the country's national interests."