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Eduard Kubatov: Agreement with Centerra opens up good prospects for Kyrgyzstan

According to the expert, «if the partners solve environmental problems and open a new page of cooperation, Kyrgyzstan will have great prospects,» an independent member of the Board of Directors of Centerra from Kyrgyzaltyn Eduard Kubatov said.

Negotiations between the government and Centerra lasted a year and five months. Eduard Kubatov, as an independent member of the Board of Directors of Centerra, coordinated the work between the Kyrgyz government and the top management of the foreign company. His mission was to provide a platform for negotiations.

According to him, « it is in our interests to extend the life of the mine from 8 to 15 years.» «This is important for the socio-economic sphere. The second very important point is that we are not limited to resources on the territory of Kyrgyzstan. New assets in Mongolia, Turkey, Canada will open up broad prospects for us. The assets of Centerra have great value for the country. Kyrgyzstan has plans to maintain and increase its stake in the company and expand its presence in the Kumtor project,» the member of the Board of Directors explained.

Another important point is the investment climate, he noted. «Any investor who wants to invest in our country is studying the history of its cooperation with other major partners, and the first thing that draws attention is the problems with Kumtor. Now when the issue has been resolved, this will definitely play a key role in qualitative changes in the investment climate,» Eduard Kubatov said.

Shares of Centerra grew by more than 17 percent, while the Canadian company itself is estimated at almost $ 2.5 billion.

«The share of Kyrgyzstan for several days increased by $ 100 million. And this is only the beginning, — the expert is sure. — We hope that in the near future we will see the capitalization of Centerra for about $ 3 billion, and our share, possibly, will grow to $ 1 billion. This is the first indicator of honest and active cooperation of Kyrgyzstan with the Canadians.»

The agreements on environmental issues, according to Eduard Kubatov, can become an example of exemplary relations between the republic and other mining companies. This is a positive experience for potential partners, which shows how environmental problems should be solved, social responsibility of investors formed and successful cooperation with Kyrgyzstan established, he said.