Centerra gold reaches settlement in long-running dispute with Kyrgyz Republic
The deal will finally allow the free movement of its employees; several senior managers have not been allowed to leave the central Asian country and return to Canada
TORONTO—Centerra Gold Inc. has reached a settlement in its long-running dispute with the government of the Kyrgyz Republic.
The agreement will lift restrictions on the ability of Centerra’s Kyrgyz subsidiary Kumtor Gold Co. to transfer cash to Centerra and allow the free movement of its employees.
Under the deal, Kumtor Gold has agreed to make a one-time payment of US$50 million and annual payments of US$2.7 million to a new, government-administered nature development fund.
The company will also make payments to a new cancer care support fund, including a one-time payment of US$7 million and a second payment of US$3 million within 12 months of closing.
In addition, Kumtor Gold will accelerate its annual payments to a reclamation trust fund in the amount of US$6 million a year until the total reaches the estimated reclamation cost for the Kumtor Project.