Azernews.Az

By Aynur Karimova

Negotiations between Canadian Centerra Gold Inc. and the Kyrgyz government over the Kumtor gold mine will continue until the autumn, Kyrgyz Deputy Prime Minister Valeri Dil told journalists on June 23.

"There is nothing to report about the progress of the negotiation process, as the Canadian side does not respond to us. Therefore, the negotiation process will last until the autumn," he noted.

Operated by a Toronto-based company, the Kumtor gold mine is the largest gold mine in Central Asia, having produced more than 9.9 million ounces of gold between 1997 and the end of 2014. Last year, Kumtor’s gold production was 567,693 ounces.

The mine's output is crucial for Kyrgyzstan's economy, accounting for 7.4 percent of its gross domestic product and 15.5 percent of industrial output in 2014.

In early June, Centerra Gold Inc. cautioned a possible suspension of activity at the Kumtor gold mine "due to obstacles from the Kyrgyz government agencies" in approving the annual mine plan of the company for 2015.

Kumtor Gold Company sent the plan for approval from the relevant government agencies at the end of 2014. The government instructed these agencies on March 12, 2015 to finalize and approve the plans, which were earlier adopted by the State Agency on Geology and Mineral Resources.

However, Kyrgyzstan’s environmental protection agency requested an extension to July 4, 2015, in order to study the project. The reason for the delay was Kumtor Gold Company's plan to replace ice masses that would prevent the Davydov glacier from sliding into the open-pit mine. All of these measures were included in the company's mine plan.

These activities are contrary to the Water Code of Kyrgyzstan, which prohibits any activity that could impact the natural state of the glaciers or the quality of water contained therein.

Therefore, the Kyrgyz government has developed amendments to the country’s Water Code for strengthening control and ensuring the smooth operation of the Kumtor mine and has submitted them to parliament.

The cabinet said that the development of the Kumtor mine over 20 years has had some impact on the environment. According to domestic and foreign experts, the lack of adherence to environmental law and the unloading of a moving glacier mass may lead to negative geotechnical and environmental consequences.

These circumstances have prompted the Kyrgyz government to develop amendments to the Water Code.

The adoption of the draft law with amendments should allow for implementing operational procedures in the mines and other industrial sites for the compulsory relocation of glacial mass.

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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

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