The completion of the strategic agreement between the government of Kyrgyzstan and Canadian miner Centerra Gold has been hailed as a “turning point in the history” of the Kumtor gold mine and paves the way for the mining company to continue work.

The legal proceedings affecting the Kumtor project and international arbitration proceedings have been terminated now that the second completion under the strategic agreement has been obtained.

The parties reached an agreement relating to the Kumtor mine in September 2017, resolving issues including environmental and profit-sharing disputes. The deal was expected to close in May 2018, but its completion has been pushed out several times.

The first completion date under the accord was achieved last month.

“The certainty brought by the strategic agreement will allow us to continue working to expand the Kumtor’s project’s reserves and resources, extend the life of the mine, improve its efficiency and profitability, strengthen our commitment to social programmes and to protect the environment for the mutual benefit of Centerra and the Kyrgyz Republic,” said president and CEO Scott Perry.

With the second completion having been achieved, all obligations under the strategic agreement, including the settlement and releases of liability, as well as the obligations of Kumtor Gold Company to make contributions to various environmental and social funds of the Kyrgyz government, have become effective.

Kumtor Gold Company will make payments to the Kyrgyz Republic Nature Development Fund and Cancer Care Support Fund.

Centerra’s subsidiary has also committed to additional contributions over and above those required in the strategic agreement to “strengthen its social licence to operate”, including a $5-million lump sum contribution to a new Kyrgyz Republic Social Partnership for Regional Development Fund within five business days of the second completion date, a $5-million lump sum contribution to the fund within 12 months of the second completion date, monthly contributions to the regional fund equivalent to 0.4% of Kumtor’s revenues, a yearly contribution of $1-million to the Kyrgyz Republic Nature Development Fund, and exploration expenditures of at least $16-million at the Kumtor project over a two-year period.