Centerra Gold Inc. (TSX:CG) has responded to media reports regarding their Kumtor Project, which among other things, said that there were recommendations for the Government of the Kyrgyz Republic to open negotiations for terms surrounding the governance of the Kumtor Project is governed, with the end goal of applying a new tax regime, and levying higher environmental charges.
As quoted in the press release:
Centerra expects to continue discussions with the Government of the Kyrgyz Republic, with the objective of resolving matters through constructive dialogue. There can be no assurance, however, that this will be the case. Centerra notes that any discussion of the Kumtor Project must take into account existing legal obligations and binding commitments. In particular, the Kumtor Project is governed by project agreements signed in June 2009, including the restated investment agreement (collectively, the “Project Agreements”), which provides for a specified tax regime to apply to all Kumtor activities. The Project Agreements were approved by all relevant Kyrgyz Republic government authorities in 2009, including the Kyrgyz Republic Government and Parliament, and are the subject matter of a legal opinion issued by the Kyrgyz Republic Ministry of Justice and a decision by the Kyrgyz Republic Constitutional Court.
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