Canada's Centrera Gold confirmed on Monday that it was in talks with the Kyrgyz government to reach an out-of-court settlement of the dispute over the confiscation of the company's Kumtor mine in the state.
In May 2021, after taking over the country's largest mine, Centerra initiated arbitration against the former Soviet Republic because it was accused of posing a danger to human life or the environment. The company has denied all the charges.
The company also froze government shares when it seized the mine, meaning it did not have the right to vote and was not entitled to dividends.
Centerra on Monday laid out a framework for resolving the dispute, saying it should acquire about 26.1 per cent of the common shares held by the state-owned Kyrgyz joint venture.
It also stated that the State should bear full responsibility for the company's two Kyrgyz subsidiaries and the Kumtor mine.
Kyrgyz President Sadyr Zhaparov said in a statement on January 2: "at present, the parties are finally discussing a friendly agreement, including conditions for the full transfer of Kumto Gold to the Kyrgyz Republic.
In December, a source close to the government revealed that Kyrgyzstan was pushing for an out-of-court settlement of the dispute.
Centerra and Kyrgyzstan have a long-running dispute over how to share profits from 550000 ounces of gold mines.
