Kyrgyzaltyn Chairman of Board tells about negative consequences of Kumtor’s nationalization 

Kyrgyzaltyn Chairman of Board told about negative consequences in case of nationalization of Kumtor mine. Diliger Zhaparov stated at session of Ata-Zhurt parliamentary faction.

According to him, today Centerra has 77 million of our shares. "Their cost is estimated at $4.6 per share. A total sum amounts to $360 million. If we nationalize Kumtor, these shares will be sold for 1 cent each and we will get $77 million at all. According to calculations, due to shortfall in direct and indirect taxes we lose $268 million. At the same time there are losses on missed profits and other articles. There are fears that court proceedings can last many years and it, obviously, will negatively influence the economy of the country and losses of Kyrgyzstan can reach $4 billion," Diliger Zhaparov added.

Recall, the Government suggests creation of a joint venture with the Canadian party with equal 50-50 participation interest.