Talks on Kyrgyzstan's Kumtor mine face new delays

Subject

The Kyrgyzstan government's dispute with Canada's Centerra mining company.

Significance

In December, the government of Kyrgyzstan abandoned its own proposal for reshaping ownership of the Kumtor gold mine, an important contributor of revenues. Control of the mine has been contested over the years, and negotiations between the government and Centerra, the firm that runs the mine, have failed to result in definitive, lasting solutions. The decision to halt talks was taken by a new government formed after a parliamentary election in October.

Impacts

• GDP growth prospects will be uncertain until Kumtor production is assured for the year.
• Potential investors will be deterred by the recurring and seemingly intractable mine dispute.
• Russia will no longer be in a position to offer Kyrgyzstan generous assistance.