Reuters reported that Zhantoro Satybaldiyev, Kyrgyzstan’s new president, will not nationalize Centerra Gold Inc.’s (TSX:CG) Kumtor gold mine although he has been urged to do so.
As quoted in the market news:
Adding to political instability, Kyrgyzstan’s legislature voted in June for renegotiation of a contract with Centerra, which runs the Kumtor gold mine in the Tien Shan mountains, after a report found the project had damaged the environment.
Persistent calls to nationalize Kumtor Operating Co – the largest gold mine operated in Central Asia by a Western-based company – have further heated tension around the project, although the opposition failed to muster up enough votes in parliament to adopt this policy.
“Kumtor will not be nationalized,” Satybaldiyev told reporters after visiting the mine and meeting Centerra’s top management. “Problems will be resolved. I asked (the Kumtor venture) to keep up its output.”