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Agreement with Centerra – great result of negotiations for Kyrgyzstan

«This is a great result for us. It is very important that the agreement lasts long and is carried out by both parties. We often change the government, and everything starts anew, we can’t be having that,» board member of the Kyrgyz Mining Association Valentin Bogdetsky said, commenting on new agreements between Centerra and the Kyrgyz government.

«The conditions are very good for the Kyrgyz side: large sums of money have been received, legal disputes between the parties stopped. We, in fact, spoiled our investment image with incessant disputes with Kumtor, mutual courts, threats of nationalization and so on. If all this stops, it will positively affect the overall investment climate. Therefore, signing the agreement will be of great benefit to both sides. I hope that this will be done. At least, the government’s message says that the positions are coordinated,» the expert said.

According to him, the new arrangements are also beneficial for Centerra:

First, it will increase the value of the shares. Secondly, it will be much easier to receive money for investment in Kyrgyzstan, because the risks will be reduced.

«The Cabinet of Ministers said that Centerra Gold Inc. intends to search, explore and develop new facilities. And here to attract money for this will be easier and cheaper. And one had to think about it yesterday. The project Kumtor, it was said many times, ends in 2026. And from the moment of geological exploration, confirmation of reserves and before the start of production, no less than 10 years pass. This should start today, in order to get a new deposit in 2026,» said Valentin Bogdetsky.

He noted that the negotiations were protracted, but the government still managed to complete them. «But it’s no secret that Kumtor has long been a non-economic issue, but a political one. And I would like to hope that the political component of the project will no longer prevail. As a whole, I, as an expert, took a positive message on the results achieved in the negotiation process, with the hope that everything will improve,» Valentin Bogdetsky said.