Centerra Gold Inc. (TSX: CG) announced on Monday that it has filed an application for immediate relief against Kyrgyzstan within the ongoing international arbitration related to the contested Kumtor mine. The mining firm said the move seeks to prevent the government “from causing irreparable damage to the mine”.
The Canadian firm is currently in an international arbitration with the Central Asian country after what the company claims to be an illegal seizure of the Kumtor mine assets. The Kyrgyz officials rebutted with its own claim that the mining firm abdicated its duties on the property.
Centerra Gold is seeking immediate relief pending the final award in the arbitration to prevent the Kyrgyz Republic “deviating from the government-approved 2021 Kumtor mine plan”. The firm is also seeking an order from the arbitration court to direct the government and the state-owned company shareholder Kyrgyzaltyn JSC to refrain from transferring Centerra Gold shares or mine operator Kumtor Gold Company assets, and interfering with the arbitration process.
According to its application, the mining company has reasons to believe that the “Kyrgyz government and its agents are jeopardizing the Kumtor Mine itself”. Among the company’s observations include the government-appointed mine managers appearing to be departing from the mine plan, ineffective use of pumps that led to the property accumulating unusual amounts of water, and the plans to transition the mine from open pit to underground.
The claims will be adjudicated in Stockholm under the rules of the United Nations Commission on International Trade Law.
Earlier this month, the Kyrgyz Republic put current and former Centerra Gold officers in the country’s wanted list. The government also detained two of its former prime ministers related to the alleged corruption case surrounding the Kumtor mine.
Centerra Gold Inc. last traded at $8.83 on the TSX.
Information for this briefing was found via mining.com and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.