BISHKEK, June 5 (Reuters) – Kyrgyzstan’s parliament has set a new Sept. 10 deadline for the government to agree an improved mining deal with Canada’s Centerra Gold or unilaterally cancel the current arrangement.
Centerra, which runs the central Asian nation’s flagship Kumtor gold mine, has come under pressure to revise a deal struck in 2009 after a state commission said it was underpaying the government and had caused “colossal” environmental damage.
Last week, hundreds of protesters forced a brief stoppage to production at the mine, hidden high in the Tien Shan mountains near the Chinese border.
In late February, the legislature gave the government three months to strike a new deal with Centerra, but the government missed a June 1 deadline, saying it needed more time for talks. These include a proposal for Kyrgyzstan to swap its stake in the Toronto-listed company for joint ownership of Kumtor.
After hours of heated debates, the new deadline was adopted by a 65-5 vote. “There are three options. The first is to redraw the 2009 agreements and start working in line with Kyrgyz laws, including taxation,” Economy Minister Temir Sariyev said before the vote.
“Second, Centerra proposes to establish a joint venture at the Kumtor mine by unbundling Kumtor from Centerra. The third option is to cancel (the 2009) agreements.”
During the debates, two of the five parties represented in Kyrgyzstan’s parliament demanded nationalisation of the mine, which underpins the shaky economy of the politically volatile nation that has seen two presidents toppled since 2005.
Prime Minister Zhantoro Satybaldiyev, who has ruled out Kumtor’s nationalisation, had asked deputies to give his cabinet at least until Oct. 1 to complete talks with Centerra.
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