September 24, 2021

Biz Journal

Business perfection

A Gold Mine Takeover Highlights Rising Mining-Sector Threat

Canada’s Centerra Gold Inc. invested greater than $3 billion over practically three many years to show a distant gold prospect in Kyrgyzstan right into a affluent gold mine. Then in Could, the mine was taken over by authorities within the former Soviet republic.

Officers from Kyrgyzstan’s secret police arrived at houses of native mine managers to acquire laptop passwords, confidential paperwork and keys to the mine and the pinnacle workplace of Centerra’s wholly owned subsidiary Kumtor Gold Co., folks accustomed to the matter and court docket paperwork stated.

Mining and authorized specialists say the expropriation of certainly one of Central Asia’s largest gold mines—which had accounted for a couple of tenth of Kyrgyzstan’s financial output—is without doubt one of the most brazen strikes in recent times by a rustic to claim management over beneficial pure assets.

Centerra is much from the one mining firm that has tangled with governments in recent times. Gold or copper mines in Tanzania, Papua New Guinea, Mongolia, Indonesia, Greece and South America have been stalled or threatened as native governments pushed for extra taxes, royalties or bigger stakes.

Mining big Barrick Gold Corp. , for instance, settled a standoff with Tanzania in 2019 by paying the African nation $300 million and sharing possession at three native gold mines. Tanzania’s president on the time stated he was waging “financial battle” in opposition to miners who weren’t paying ample royalties and taxes.

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