16/06/2014 - Kyrgyzstan approves Kumtor gold mine plan for 2014

Category: Business & Market News
Published on Monday, 16 June 2014 Written by TCA

BISHKEK (TCA) — Kumtor Gold Company (KGC) last Friday announced that it has received the necessary approval of its 2014 Kumtor gold mine plan from the relevant Kyrgyz government agencies. KGC confirmed that Kumtor mine will continue to operate uninterrupted.

Early in June Canada-based Centerra Gold Inc., which owns the Kumtor gold mine through its wholly owned subsidiary Kumtor Gold Company, announced that “despite its efforts to obtain approval from Kyrgyz Republic authorities for the 2014 Kumtor mine plan and related permits, such approval and permits have not been issued”, and if approval and permits are not obtained by June 13, Centerra intended to begin an orderly shutdown of operations at the Kumtor project.

“KGC is pleased to continue its positive collaboration with Kyrgyz Republic authorities,” the company said last Friday, adding that according to the Kyrgyz Republic National Statistics Committee, Kumtor’s impact on the macroeconomic performance of the Kyrgyz Republic in 2013 represented 7.7% of the GDP of the country, Kumtor’s share of the industrial output was 24% and gold’s share in the national exports was 36.5%. Kumtor’s contributions for the first three months of 2014 to the Kyrgyz national budget in taxes, social fund contributions and other mandatory payments totaled 2.23 billion soms or USD $41 million.

The company directly employs over 3,000 people of which more than 96% are Kyrgyz citizens, in addition to the direct employment indirectly more than 7,000 people are employed in related industries in the Kyrgyz Republic and provide services to Kumtor. The mine is a significant contributor to the local economy purchasing more than 11,000 items from 600 different Kyrgyz enterprises. Monthly purchases from local suppliers total approximately USD $4.8 million per month, the company said.

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