Centerra Gold Announced Arbitration over Kumtor Gold Mine

SEATTLE (Scrap Monster): Centerra Gold Inc. announced that it has launched binding arbitration against the Government of the Kyrgyz Republic in connection with the company’s Kumtor gold mine. The arbitration focuses on enforcing its rights under longstanding investment agreements with the Government.

The company seeks to prevent the country’s government from taking further steps to implement recently adopted legislation or to pursue recently imposed fines and tax claims against it. It also intends to hold the government accountable for any and all losses and damage that result from its recent actions against it, if no resolution is reached.

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Centerra Gold noted that it is wrongful and illegal for the government to pass a new law in a single day that allows it to appoint an “external manager” to control the mine operations, if the government finds any act that pose a risk to human safety and the environment. It also questioned the hasty decision by the Court to impose a fine of $3 billion on the company in response to private civil environmental claims. Furthermore, it also questioned the intimidation of company officials by law enforcement officials, including police visits on senior managers’ residences and raids at company premises.

Meantime, Scott Perry, President & Chief Executive Officer, Centerra expressed willingness to engage in constructive dialogues with the government.