Kyrgyz President Sadyr Japarov announces settlement Agreement with Centerra Gold mining company.
On April 4, President of the Kyrgyz Republic Sadyr Zhaparov announced the signing of an agreement between the Cabinet of Ministers and Centerra Gold Inc. to resolve disputes over the management of Kumtor Gold Company.
According to the agreement, the Cabinet of Ministers of the Kyrgyz Republic received the right to fully manage and own the Kumtor mine.
In an address to the nation, President Sadyr Zhaparov called the agreement a "historic breakthrough" and noted that the conditions concluded are the best possible at the moment.
The agreement provides clear separation and resolution of all disputes between the Cabinet of Ministers of the Kyrgyz Republic, Centerra and Kyrgyzaltyn, which is the main shareholder of Centerra.
The agreement contains the following:
• The Kyrgyz Republic and Kyrgyzaltyn OJSC will assume full responsibility for the Kumtor mine and retain the income received from the mine after May 15, 2021;
• Centerra will make a payment of US$50 million to conserve and protect the natural resources of the Kyrgyz Republic;
• Centerra will make an additional cash payment of US$11.1 million to Kyrgyzaltyn;
• In addition, control over the reclamation fund in the amount of 53 million US dollars will be returned to the Kyrgyz Republic;
• Kyrgyzaltyn and Centerra will exchange shares, while Kyrgyzaltyn will return its shares of 26 % in Centerra and receive 100% of KGC shares.
• The agreement also provides the complete and final withdrawal by the parties of mutual claims, the termination of all legal proceedings involving the parties in all jurisdictions without recognition of liability. And also terminated litigation in the International Court of Arbitration.
The agreement was provisionally approved by the Cabinet of Ministers of the Kyrgyz Republic and the Jogorku Kenesh of the Kyrgyz Republic.