Kyrgyzstan takes on full management and ownership of Kumtor Gold Mine

Bishkek / Kabar /. President of the Kyrgyz Republic Sadyr Zhaparov addressed the people of the country in connection with signing of an agreement between the Kyrgyz Government and Centerra Gold Inc. resolving their disputes over the ownership and management of the Kumtor Gold Company. The president named this day as a turning point in the history of the country. “The Kumtor deposit is now wholly owned by Kyrgyzstan. 100% of the shares in the Kumtor Gold Company belong to our republic. We have also ensured that our full control of the field will be counted from the date of the introduction of external management in May last year. Therefore, all profits since May 15, 2021 also belong to us - this is more than 323 million US dollars. In addition, Centerra pays us dividends for the three quarters of last year. In net volume, they amount to about 11 million US dollars. Another achievement is that we have reached an agreement on a one-time payment by Centerra to the Kyrgyz side of 50 million US dollars. We are regaining control of the Kumtor Mine Reclamation Fund - we are receiving about 53 million US dollars, which was previously held in a trust account in a London bank. Centerra is dropping all lawsuits initiated against the Kyrgyz side: in the US, Sweden and Canada. For its part, Kyrgyzaltyn OJSC transfers its 26% stake to Centerra. At the same time, Centerra covers all tax payments under Canadian law related to the transfer of rights to the specified block of shares. The Kyrgyz side also terminates all court and other cases and claims initiated against Centerra. Reaching such an agreement was not easy, and decisions on each item took about a year,” he said. President Zhaparov stressed that the Kumtor deposit is currently valued at three billion dollars according to the most conservative estimates. “According to experts, in the next 10 years we will receive 5 billion US dollars in profit from Kumtor, having produced 160-200 tons of gold. This is a direct benefit and a big support for the budget,” he added.