Centerra Gold in Final Stages of Out-of-Court Settlement with Kyrgyzstan

SEATTLE (Scrap Monster):  Canadian miner Centerra Gold is said to be in the final stages of reaching a settlement with the Kyrgyzstan government on the controversial Kumtor Gold mine. The announcement to this effect was made by Akylbek Japarov, Prime Minister, Krygyzstan, while speaking at an energy conference.

According to Japarov, the talks on Kumtor gold mine are nearing conclusion. The government is in all efforts to settle the matter with the Canadian miner, reported Interfax news agency.

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Both the parties are involved in a long-standing dispute over the operation of the mine. However, the controversy turned worse in May last year when the country’s government took control of the mine, alleging that the Centerra mining operations were detrimental to environment and nearby communities. However, the miner had refuted all the charges and initiated arbitration.

The mine is crucial for the company, as it contributes to more than 50% of the total output. At the same time, it is equally crucial to the country, it being the country’s largest private sector employer and taxpayer.

The seizure of Kumtor Gold mine had resulted in delay of other projects. The news of an amicable settlement will likely give new life to these stalled projects.