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Centerra Gold, Kyrgyzstan to terminate arbitration on Kumtor gold mine

Centerra Gold Inc. said Aug. 7 that the company and the government of Kyrgyzstan are moving to terminate the international arbitration proceedings at the Permanent Court of Arbitration and certain civil proceedings affecting the Kumtor gold mine.

The company said that all conditions precedent to the completion of the strategic agreement it entered with the Kyrgyz Republic on Sept. 11, 2017, are satisfied.

Following the date of the termination of the legal proceedings, Centerra's Kyrgyz subsidiary Kumtor Gold Co. CJSC will make payments under the strategic agreement, including to the Kyrgyz Republic Nature Development Fund and Cancer Care support fund. Kumtor Gold also made commitments to contribute financially to the Kyrgyz Republic Social Partnership for Regional Development Fund.

Centerra Gold finalized an agreement with Kyrgyzstan in September 2017 after the company was alleged by the government that it breached environmental and other rules, which it has denied.