Parliament of Kyrgyzstan approves creation of a joint venture at the Kumtor deposit

On Thursday, the parliament of Kyrgyzstan approved a draft agreement, proposed by the republic’s government, with the Canadian company Centerra Gold Inc on the creation of a joint venture on a parity basis at the Kumtor gold deposit without any additional financial obligations of the parties, the RIA Novosti transmits.

The difference in shares evaluation is proposed to be equalized by reduction of Centerra Gold Inc’s assets on account of a list of expensive mobile equipment, bought for the mine after 2009, which will be given on lease to the joint venture till 2026 and then will become its property. After termination of the mining operations at the mine (2026), the Kyrgyz party will be able to increase its share in the joint venture to 67% at a commercial price.