Kumtor Gold Mine Is Under Full Control of Kyrgyzstan Authorities

SEATTLE (Scrap Monster): The government authorities in Kyrgyzstan announced that they are in full control of the Kumtor Gold Mine.

Centerra Gold, which had operated the mine until last month, has been involved in disputes with the country’s government over issues related to profit sharing from the mine. The Krygyztan lawmakers passed a law recently, allowing the government to take temporary control over the mine, citing environmental and safety concerns. In addition, the government announced appointment of external management to supervise the mine operations.

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Nurdin Usenov, acting chief production officer, Kumtor Gold Mine stated that all units are working without interruptions. He reiterated that mine is on its path to meet the earlier production guidance of 470,000 to 510,000 ounces of gold in 2021.

Meantime, Dinara Kutmanova, the head of state environment and climate committee alleged that Centerra Gold has dumped more than a million tonnes of waste rock, thus damaging glaciers. However, Scott Perry, President and Chief Executive, Centerra Gold refuted the charges, saying that the government regulatory authorities have not yet asked the company to make changes in its operations.

Centerra Gold said that its subsidiaries- Kumtor Gold Company and Kumtor Operating Company have already initiated bankruptcy proceedings in a U.S. court.