Kyrgyzstan have doubts as for the transparency of Canadian Centerra at Kumtor

18 May 2016

National gold mining company of the Republic of Kyrgyzstan JSC "KyrgyzAltyn" - the largest shareholder of Canadian Centerra Gold, has expressed doubts about the transparency of operations at Kumtor field, - said in a statement of "KyrgyzAltyn", published on the company's website. Kyrgyz government owns about 33% of Centerra shares stock through "KyrgyzAltyn". Several years ago, Kyrgyz authorities announced their intention to restructure unjust (on the opinion of the country's government) agreements signed at the time of ousted presidents Akayev and Bakiyev. "Kumtor deposit was and remains the main asset of the company … Unfortunately, relationshipd between "KyrgyzAltyn" and Centerra are far from ideal and continue to worsen, and some of the events and decisions at the level of the Company's Board of Directors demonstrated a lack of opportunities for "KyrgyzAltyn" in terms of effective influence on Centerra management in the interests of shareholders… "KyrgyzAltyn" have serious questions about the transparency of Kumtor project's operations", - said in the statement. JSC stressed that thay have previously applied to the management of the company with a request to increase control over the activities of Kumtor Gold Co (100 percent subsidiary of Centerra). In particular, it is about ensuring transparency and fairness in the procurement of goods and services as well as attracting contractors which would reduce the costs at the mine. "Currently, the courts are considering the lawsuits on inflicting environmental damage to Kyrgyzstan by more than $ 300 million. Moreover, as we have learned, the General Prosecutor Office of Kyrgyzstan has taken up criminal cases including those regarding corruption and fraud on the part of the former and current management of Centerra. In addition, fundamental mistakes in environmental and agricultural legislation are made", - said "KyrgyzAltyn". In this regard, "KyrgyzAltyn" believes that "there is a need of significant changes in the composition of Centerra management both at the management and at the board level": "KyrgyzAltyn" declares the decision to abstain from voting for candidates to the Board of Directors nominated by Centerra management.

Sourсe: Gold Mining Manufacturers' Reporter RIA News