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Alliance Altyn to challenge denial of putting license in pledge to get loan

«As soon as we receive official notification about denial of permission to pledge a license, we will make an administrative complaint to the State Committee for Industry, Energy and Subsoil Use of Kyrgyzstan, stating our position on this issue,» said Director of Alliance Altyn LLC Mikhail Shubin.

According to him, a collateral is needed all over the world to obtain loans. One of the requirements of VTB Bank is securing of obligations through a license pledge. The Law on Subsoil in Kyrgyzstan gives the licensee such a right. This is done with the consent of the authorized state bodies.

«On August 15, 2018, we applied to State Committee for Industry, Energy and Subsoil Use of Kyrgyzstan with such a request and received consent to conclude a pledge agreement. But later it became known that on October 3, the Commission on Subsoil Use Licensing canceled its previous decision. But we have not yet received official notification from the authorized body about this,» Mikhail Shubin told.

The company claims that the issue of giving consent to the license pledge has been considered in the absence of representatives of Alliance Altyn.

«There are no rules in the Kyrgyz legislation based on which an authorized state body has the right to refuse obtaining a consent to enter into a license pledge agreement due to court proceedings. After all, the trial is not related to the pledge. It is a dispute about the legality of charging fines to Alliance Altyn LLC,» director of the company said.

The company believes that the penalties for violation of the terms of construction of a gold extraction plant were charged illegally. According to sanitary norms and rules, construction begins with access roads, construction of permanent and temporary on-site roads, engineering networks (sewage, water, heat and power supply).

«The legal moment of the start of construction is the fact of work on the construction site. Taking into account the fact that the mill and the tailing dump are single complex object (start-up complex), the fact of starting work on any construction site included in the list of the mill’s facilities means that the company has started building the plant and tailing dump,» Mikhail Shubin believes.