Since 2012 Kumtor Gold Company (KGC) has received claims from various Kyrgyz regulatory authorities seeking compensation of $465 million, the company’s annual Environment and Sustainability Report 2017 says.
Centerra and KGC believe that such claims are without merit and have vigorously defended such claims in the Kyrgyz Republic courts and in international arbitration.
In September 2017 Centerra and KGC entered into a strategic agreement to settle all outstanding matters affecting the Kumtor Project, including the claims discussed above.
In September 2017 the claim in the amount of approximately $200 million commenced by one of the regulatory authorities was terminated. In March the other claims commenced by a separate regulatory authority were terminated (upon the application of the relevant regulatory authority), although KGC understands that such regulatory authority has since filed applications to re-open these claims.
“Centerra and KGC will continue to dispute these claims. KGC and Centerra are continuing to work with the government of the Kyrgyz Republic to ensure the satisfaction of various conditions precedent for the Strategic Agreement by its current longstop date of July 23,” the report says.
It should be noted that the First Longstop Date under the Strategic Agreement for Environmental Protection and Investment Promotion was extended for the third time. At the same time, the government said it was preparing a new agreement on operation of the mine. (24.kg/Ukrainian metal)
