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.

ENDS

— 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

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.

–ENDS–

— 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

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.”

ENDS

— 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

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.

ENDS

— 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