border review | 29 June 2012

Kyrgyz Gold

Leila Saralayeva (AP):

Kyrgyzstan’s parliament backed a motion Wednesday to review the operating license of a company developing a major gold mine that accounts for 12 percent of the Central Asian nation’s economy.

There were two votes on Wednesday. First, the parliament decided against the total nationalisation of the Kumtor gold mine, which is operated by Toronto-based Centerra Gold. In a second vote, however, the parliament agreed on increasing the government’s present 33 percent stake and set up a commission to review the environmental damage. The mine borders a nature reserve and last year’s report of Kyrgyzstan’s Interagency Governmental Commission gives much reason for concern.

Investors got cold feet and Centerra stock lost a third of its value.