Kyrgyzstan announces completion of Kumtor transfer process

18:52, 29 июля 2022, Bishkek - 24.kg news agency , Tatyana KUDRYAVTSEVA

Procedure of exchange of documents confirming the process of transfer of Kumtor gold mine into the ownership of Kyrgyzstan took place at the Embassy of Kyrgyzstan in the UK. Press service of the President of the Kyrgyz Republic reported.

On the territory of the Embassy of Kyrgyzstan, in the presence of international legal representatives of the parties and an escrow agent, the Ambassador Extraordinary and Plenipotentiary of the Kyrgyz Republic to the UK, Ulan Dzhusupov, received a full package of legal documents, including all necessary deeds of transfer, powers of attorney and certificates for registration of a complete transfer of ownership of 100 percent of the shares of Kumtor Gold Company and Kumtor Operating Company in favor of Kyrgyzaltyn OJSC.

President Sadyr Japarov gave instructions to the Cabinet of Ministers to ensure the effective development of the national treasure of the republic — Kumtor mine for the benefit of the people of Kyrgyzstan in compliance with all requirements of national legislation (environmental, tax, corporate, labor and others) and international standards.

The agreement reached includes, among other things, the following points:

• The Kumtor mine is completely transferred into the ownership of the republic. At the same time, Kyrgyzstan is recognized as the owner of the gold produced at the mine from May 15, 2021.
• Centerra Gold is to pay dividends of approximately $11 million.
• A one-time payment by Centerra Gold to the Kyrgyz side in the amount of $50 million has been agreed.
• Kyrgyzstan is taking control of the Reclamation Fund of the Kumtor mine with about $53 million. This amount will also be transferred to a special account in one of the Kyrgyz banks.
• Centerra Gold terminates all lawsuits initiated against the Kyrgyz side: in the USA (terminated on July 27), Sweden and Canada (letters of withdrawal of claims were sent on July 28).