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Kumtor mine closure averted as Kyrgyz govt approves mine plan

Kumtor mine closure averted as Kyrgyz govt approves mine plan

Photo by Centerra Gold

13th June 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – After threatening last week to shutter its flagship Kumtor gold mine in the absence of an approved 2014 mine plan, Canadian miner Centerra Gold on Friday reported that the relevant Kyrgyz Republic agencies had approved the mine plan.

The TSX-listed company confirmed that no shutdown would be required and that the Kumtor operations would continue uninterrupted.

Despite Centerra's Kumtor openpit mine having dealt with several setbacks since the project started in 1994, including threats of nationalisation, riots and, more recently, a $300-million ecological damages lawsuit, Centerra on Friday noted that it had "always worked constructively and in good faith with the Kyrgyz government and regulatory authorities to ensure the continuous operation of the Kumtor mine for the benefit of all parties".

The mine contributes about 10% of the Central Asian country's gross domestic product.

Centerra’s subsidiary in the Kyrgyzstan, Kumtor Gold Company, 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 had usually been granted in the first quarter of the year.

Centerra expects to produce between 550 000 oz and 600 000 oz of gold from the Kumtor mine in 2014, at an all-in cost of between $833/oz and $909/oz.

Edited by Creamer Media Reporter

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