Kyrgyzstan gains ownership over Kumtor Gold Mine from Canadian mining company

Oil&Gas Materials 30 July 2022 12:04
Kyrgyzstan gains ownership over Kumtor Gold Mine from Canadian mining company

BAKU, Azerbaijan, July 30. The procedure for the exchange of documents confirming the process of transferring the Kumtor Gold Mine into the ownership of Kyrgyzstan took place at the Embassy of Kyrgyzstan in the UK, Trend reports via press service of the Kyrgyz president.

"On July 29, 2022, all necessary deeds of transfer, powers of attorney, and certificates for the registration of a full transfer of ownership of 100 percent of shares of Kumtor Gold Company and Kumtor Operating Company in favor of Kyrgyzaltyn JSC were given to the ambassador of Kyrgyzstan to the UK Ulan Djusupov", the message says.

The Kumtor mine is one of the largest gold mines in Central Asia, situated in Kyrgyzstan. It has been operating since May 1997 and is the concession holder for the Kumtor deposit and is responsible for its entire production cycle. Kumtor was previously owned by Canadian mining company Centerra Gold.

The agreement reached between the parties includes the following points:

- The ownership of the Kumtor deposit has been fully transferred to Kyrgyzstan. At the same time, Kyrgyzstan is recognized as the owner of the gold produced at the mine from May 15, 2021;

- In addition, Centerra Gold Inc. will pay dividends in the amount of $11 million and a one-time payment of $50 million to the Kyrgyz side;

- Kyrgyzstan takes over the management of the Reclamation Fund for the Kumtor Mine - in the amount of about $53 million.