Nationalization of Kumtor: Parliament to hold extraordinary session
Parliament of Kyrgyzstan will hold an extraordinary session on May 17, press service reported.
The deputies will discuss probable nationalization of Kumtor company. Earlier, the deputies adopted a law allowing imposing external management at the enterprise. In addition, there is a court decision to recover a compensation in the amount of more than $ 3 billion for environmental damage from the company.
Centerra Gold Inc. announced that it became aware of a number of legal and political developments in Kyrgyzstan that may have an impact on the ownership and its rights of Kumtor mine under the revised 2009 project agreements.
Accordingly, the company understands that the adopted law on external management would apply in circumstances where Kumtor Gold Company (KGC) violates certain Kyrgyz laws relating to safety and thereby creates an immediate threat to the life or health of people:
- Prohibits KGC’s managers from managing the mine (or else face criminal sanctions);
- And enables the Prime Minister of the Kyrgyz Republic to appoint an external manager to take control of all management activities of KGC, including its bank accounts.
