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Kyrgyz mine deal may limit expropriation worries

Wednesday, May 4, 2022

Significance

The removal of Canadian firm Centerra's control of the mine this month demonstrated the government's ability to win against foreign investors. A settlement announced on April 4 ends months of acrimony and litigation. Centerra exits Kyrgyzstan altogether and the government acquires complete control of the mine.

Impacts

  • Centerra has warned that Kyrgyz authorities could derail the deal if they act in bad faith.
  • The search for new investors in Kumtor will continue, despite lack of interest from Russia, China, Turkey and India so far.
  • The government is battling with problems on many fronts, not least the economic fallout of Russia's war in Ukraine.

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