An Ontario court has frozen much of Kyrgyzstan’s share in its largest industrial asset, the Kumtor Gold Mine, adding an awkward new twist to the epic saga over the mine’s future.
Kumtor is fully owned by Toronto-listed Centerra Gold, which is one-third owned by Kyrgyzstan’s state-run Kyrgyzaltyn gold company. Since early 2012, Kyrgyzstan has been trying to increase its share in the high-altitude mine, which accounts for over 50 percent of the impoverished country’s industrial output and 10 percent of GDP in a good year. Early this year, the government and Centerra were moving toward an agreement that would increase Kyrgyzstan’s share in Kumtor to 50 percent, but negotiations have stalled as some lawmakers continue to demand the mine be nationalized.
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