Tag Archives: gold

Markets: Azerbaijan gold miner still waiting for permission to reopen mine

APRIL 23 2024 (The Bulletin) — Stocks generally moved down over the past week, although Anglo Asian Mining, the Azerbaijan-based gold miner showed an upward shift. Analysts warned, though, that this may be a short-term lift as Anglo Asian is still waiting for permission to restart operations at its Gedabek gold and copper mine in western Azerbaijan.

This is its biggest and most important mine and the company has said that it can’t give full guidance on 2024 potential earnings until it knows when it can reopen the mine.

This has been closed since the middle of last year because of a row over how Anglo Asian stores its poisonous waste matter.

Its share price on the London Stock Exchange has roughly halved over the past 12 months to around 68p.

In other equities news, media reported that BAE Systems, the British arms manufacturer, had increased its stake in Air Astana to 16.95% from 15.3%. Until its IPO earlier this year, BAE Systems had owned a 49% stake in Air Astana, Kazakhstan’s national airline.

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— This story was published in issue 565 of the Central Asia & South Caucasus Bulletin, on April 23 2024

— Copyright the Central Asia & South Caucasus Bulletin 2024

Gold production falls at Kumtor, says Centerra

NOV. 3 2021 (The Bulletin) — Toronto-based Centerra Gold accused the Kyrgyz government of significantly reducing gold production at the Kumtor gold mine since it expropriated it in May. In its quarterly results, Centerra Gold said that between June and September, the Kumtor gold mine had produced 24% less gold than expected. Centerra Gold has said that it will fight to regain ownership.

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— This story was published in issue 506 of the Central Asia & South Caucasus Bulletin, on Nov. 4 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

London shell company takes over Kazakh miner

OCT. 26 2021 (The Bulletin) — London-listed shell company East Star Resources agreed a deal to buy Discovery Ventures Kazakhstan (DVK) in a reverse takeover.  It said that DVK shareholders will be issued with 45m East Star shares, with another 75m on offer depending on performance. DVK owns the right to gold and silver prospects in Kazakhstan.

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— This story was published in issue 505 of the Central Asia & South Caucasus Bulletin, on Oct. 28 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kumtor Gold takes $10m loan

OCT. 21 2021 (The Bulletin) — Kumtor Gold, a subsidiary of Toronto-based Centerra Gold, won approval from a New York court to borrow $10m despite objections from Kyrgyzstan which expropriated the company’s Kumtor gold mine in May.  Centerra Gold has promised to fight the Kyrgyz government for control of Kumtor which it took control of after alleging environmental damage.

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— This story was published in issue 505 of the Central Asia & South Caucasus Bulletin, on Oct. 28 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kyrgyz Pres. Japarov promotes ally

OCT. 12 2021 (The Bulletin) — Looking to consolidate his power, Kyrgyz Pres. Sadyr Japarov promoted his loyal lieutenant Akylbek Japarov (no relation) to the newly created position of cabinet chairman. In June, Adlybek Japarov had been promoted to economy minister and deputy minister after he successfully brought environmental charges against Canada’s Centerra Gold for its management of the Kumtor gold mine. The cabinet chairman is an amalgamation of the head of the presidential administration and the head of the cabinet of ministers.

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— This story was published in issue 503 of the Central Asia & South Caucasus Bulletin, on Oct. 12 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

London gold body suspends Kyrgyzaltyn after review

BISHKEK/SEPT. 17 2021 (The Bulletin) — — The London Bullion Market Association, effectively the world’s gold market ombudsman, suspended the membership of Kyrgyzstan’s Kyrgyzaltyn after it failed a fraud review of its business.

Kyrgyzaltyn is Kyrgyzstan’s state-run gold dealer and its suspension will irritate the Kyrgyz government which relies on gold exports to generate around 9% of its GDP. In May it expropriated the country’s biggest gold mine, Kumtor, from its Canadian owners, Centerra Gold.

In a short statement, the London Bullion Market Association said: “Kyrgyzaltyn JSC has been suspended from the LBMA Good Delivery List for failing to meet the requirements of the Responsible Sourcing Programme. All production from the refinery will no longer be accepted as Good Delivery from this date.”

In June, the London Bullion Market Association said that it had begun a review into Kyrgyzaltyn “in response to issues concerning delivery and the potential for fraud.”

Exclusion from the London Bullion Market Association’s Good Delivery list means that Kyrgyzaltyn will be shunned by the world’s main banks and gold dealers.

Neither the details of London Bullion Market Association’s investigation into Kyrgyzaltyn nor why it had been suspended have been disclosed, although media said that US financial company StoneX Group had accused it of failing to deliver half a tonne of gold. Kyrgyz officials have been quick to blame Centerra Gold, which owned Kumtor from 1997, for their problems.

The Kyrgyz security services have accused Centerra Gold officials and former PMs of corruption.
Responding to the suspension of Kyrgyzaltyn by the London Bullion Market Association, Kyrgyz economy minister Akylbek Japarov said that it would still be able to sell gold to China, India and the Middle East.

“I would like to note that the cancellation is temporary, that is, it can be restored soon,” he said. “Noone expected the Canadians to apologise for all the harm they caused the people of Kyrgyzstan, reimbursing all losses.”

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— This story was published in issue 501 of the Central Asia & South Caucasus Bulletin, on Sept. 23 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Centerra fails in $1m/day fine for Kumtor expropriation

SEPT. 15 2021 (The Bulletin) — The New York bankruptcy court turned down a case by the Toronto-based Centerra Gold that the Kyrgyz government should pay $1m sanctions for every day since it expropriated the Kumtor gold mine. The judge said that Kyrgyzstan hadn’t yet broken the rules of Kumtor’s Chapter 11 case. The Kyrgyz government expropriated the mine in May.

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— This story was published in issue 500 of the Central Asia & South Caucasus Bulletin, on Sept. 16 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Centerra files damages claim over Kumtor

AUG. 26 2021 (The Bulletin) — Canada’s Centerra Gold filed a bankruptcy motion in the US demanding a fee of $1m per day since the Kyrgyz government expropriated the Kumtor gold mine at the end of May. The Kyrgyz government has said that it has gathered enough evidence against Centerra Gold to prosecute it for corruption and environmental damage. Centerra Gold denies any wrongdoing.

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— This story was published in issue 498 of the Central Asia & South Caucasus Bulletin, on AUG. 31 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kyrgyz build Kumtor case

AUG. 11 2021 (The Bulletin) — Kyrgyzstan’s security service said that it had pulled together enough evidence to push ahead with a corruption prosecution against the privatisation of the Kumtor gold mine in 1993. The Kyrgyz government expropriated the mine in May because of what it described as environmental failings. Centerra Gold, which owns the Kumtor gold mine, has disputed the expropriation and said it is launching arbitration.

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— This story was published in issue 496 of the Central Asia & South Caucasus Bulletin, on AUG. 17  2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Ex-president returns to Kyrgyzstan to answer questions on Kumtor

AUG. 3 2021 (The Bulletin) — The Kyrgyz authorities said that Askar Akayev, the country’s first post-Soviet president, had flown to Bishkek for the first time since fleeing into exile in Moscow after a revolution in 2005 to answer questions over the privatisation of the Kumtor gold mine. It was unclear whether Mr Akayev faced the threat of arrest and had been forced to return to Bishkek. The Kyrgyz government expropriated the Kumtor gold mine this year from its Canadian owners, Centerra Gold.

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— This story was published in issue 495 of the Central Asia & South Caucasus Bulletin, on Aug. 9 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021