TORONTO (miningweekly.com) – Canadian gold miner Centerra Gold on Monday warned that it might be forced to shut down its flagship Kumtor mine, in Kyrgyzstan, if it cannot secure approval from local authorities for the 2014 Kumtor mine plan and related permits by the end of next week.

The news sent the company's TSX-listed stock sharply lower in afternoon trading, losing as much as C$1.45 a share.

Centerra said its efforts to secure the approvals and permits required to proceed with its gold mining activities at the mine – a significant source of revenue for the government –  had to date been fruitless.

Centerra's Kumtor openpit mine has faced several setbacks since the project started in 1994, including threats of nationalisation, riots and more recently a $300-million ecological damages lawsuit. The mine contributes about 10% of the impoverished country's gross domestic product.

Centerra’s subsidiary in the Kyrgyz Republic, Kumtor Gold Company (KGC), had been working since late last year with the relevant government agencies to obtain approval of its 2014 mine plan and related operating permits, which are usually granted in the first quarter of the year.

“Unfortunately, this year, despite repeated submissions and discussions with senior officials, such approvals and permits have not been provided. The continuing absence of such approval and permits creates significant uncertainty and risks for Centerra and its employees,” Centerra said in a statement.

The company would  shut down all mine and mill operations at close of business next Friday, retaining only enough staff to provide essential environmental and safety monitoring, security and essential maintenance of the mill and mine equipment.

The impact of the potential shutdown on future operations would depend in part on the duration of the shutdown.

Centerra had started an analysis of possible impacts and would expect to make a statement in this regard if the shutdown proceeded and after it had completed the necessary analysis.

The Kumtor mine operation is complex and the Kumtor openpit is subject to significant geotechnical and other challenges, including in-flow of water, ice movement from the Davydov glacier toward the openpit and pit-wall instability. An extended shutdown without active monitoring and management of such challenges would likely have a material adverse impact on the Kumtor mine and the company’s operations, future cash flows, earnings, results of operations and financial condition.

Centerra noted that all disputes regarding the Kumtor project were subject to international arbitration according to the agreements governing the project.

Centerra's stock closed down 19.74%, down C$0.91 a share at C$3.70. However, the stock had gained 41% from the start of the year.