Centerra Gold Inc. has filed an application requesting urgent interim measures in its international arbitration against the government of the Kyrgyz Republic and Kyrgyzaltyn JSC, the state-owned gold refining monopoly and Centerra’s largest shareholder, to address critical operational and safety problems at the Kumtor Mine.
Through this application, Centerra seeks to prevent the Kyrgyz Republic and Kyrgyzaltyn JSC from causing irreparable damage to the mine, destroying its integrity, value, and long-term viability.
Centerra originally initiated binding arbitration against the Kyrgyz government in response to actions taken against the company’s wholly owned subsidiary Kumtor Gold Company (KGC), to expropriate the Kumtor Mine under the guise of ‘external management’ and strip KGC of its assets.
Dan Desjardins, the Chief Operating Officer of Centerra who managed the Kumtor Mine for five years as the President of KGC until January 2020, comments:
“Statements by Kyrgyz officials since the government’s illegal seizure of the Kumtor Mine indicate that they are departing from the approved mine plan in ways that will cause irreversible damage. Based on recent reports, the government has also failed to adequately protect the mine’s infrastructure from flooding and other threats and may be facing production difficulties. Their actions, and threatened actions in pursuit of short-term profits at the expense of sustainability, place the long-term viability of the Kumtor Mine at grave risk and compromise the safety and livelihoods of its employees.”
Read the article online at: https://www.globalminingreview.com/mining/28092021/centerra-gold-seeks-urgent-relief-to-preserve-the-viability-of-the-kumtor-mine/