Centerra Gold Adds More Claims in Arbitration over Kumtor Gold Mine

SEATTLE (Scrap Monster): Centerra Gold Inc. announced that it has brought additional claims against the government of Krygyz Republic in its binding arbitration over the controversial Kumtor Gold Mine. Furthermore, it reiterated its claims against the state-owned Kyrgyzaltyn JSC.

The company announced amendment to the Notice of Arbitration, by which it now holds both the Kyrgyz government and Kyrgyzaltyn JSC equally responsible for any and all loss and damages that may result from the government’s seizure of the mine in violation of the investment agreements and without compensation to the company.

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The amended notice adds claims against Kyrgyzaltyn JSC- Centerra’s largest shareholder. The company alleges that Kyrgyzaltyn JSC conspired with the Kyrgyz government to take control of the mine under the guise of temporary management mechanism and acted at the behest of the government in connection with mining operations at Kumtor.

Scott Perry, President and CEO, Centerra Gold noted that the expropriation has placed Centerra’s investment and the livelihoods of thousands of Kyrgyz workers at risk. The company was forced to resort to arbitration and other legal means after repeated refusal by authorities to resolve the dispute through a constructive dialogue, he said.