Centerra Gold, based in Canada, is actively implementing measures to safeguard shareholder rights following the seizure of its Kumtor gold mine by Kyrgyzstan’s parliament. The company’s Chief Executive, Scott Perry, emphasized strong support from the Canadian and UK governments in this matter, reassuring stakeholders during a conference call with analysts.
The move by Kyrgyzstan’s parliament to seize control of the Kumtor gold mine, the country’s largest, came after Centerra announced its intention to challenge the government in an international court. This decision has sparked significant concern over foreign investment in the Central Asian country, prompting expressions of disappointment from the Canadian government.
Furthermore, Centerra Gold imposed restrictions on the sale of shares held by Kyrgyzaltyn JSC, a state-owned entity with a sizable stake in the company. The resignation of Kyrgyzaltyn nominee Tengiz Bolturuk from Centerra’s board was also accepted by the company.
Despite these developments, Centerra Gold disclosed holding $823 million in cash reserves, with the majority held outside of Kyrgyzstan. Perry emphasized that Centerra no longer retains control over the Kumtor mine.
This escalation is part of a longstanding dispute between Kyrgyzstan and Centerra Gold over profit-sharing arrangements. The tension intensified following political upheaval in Kyrgyzstan last October, with the country’s new leadership taking a firm stance against the mining company.
