Kyrgyzstan: towards a possible nationalization of its largest gold mine
Audio 01:53
View of the Kumtor mine, Kyrgyzstan.
AFP PHOTO / VYACHESLAV OSELEDKO
By: Altin Lazaj
5 mins
Kyrgyzstan President Sadyr Japarov signed a law passed by parliament last Friday that paves the way for a government takeover of the country's largest gold mine.
Publicity
The Kumtor gold mine is an open-pit site in the heart of glaciers, at an altitude of over 4,000 meters, in eastern Kyrgyzstan. It is owned and managed by the company Centerra Gold based in Canada, the Kyrgyz state owns only a quarter. A pillar of the country's economy, the mine employs 4,000 people and contributes around 12.5% of Kyrgyzstan's GDP. But the Canadian company is regularly accused of tax irregularities and violating environmental standards. The government is also claiming a 3 and a half billion euros fine, including 2.5 billion for dumping waste on the glaciers.
Charges challenged by the company, which offers the Kyrgyz state to settle the dispute through international arbitration if the two parties fail to find a solution.
But the government does not stop there.
The country's parliament recently passed a law authorizing the government to impose "external management" on foreign companies violating the environment.
Faced with a possible nationalization of the mine, Canada and the United Kingdom have warned the country's authorities against the "
important implications for foreign direct investment in Kyrgyzstan
" that this measure would give.
A mine of tensions
The Kumtor mine is and always has been the epicenter of debate and tension.
The local population has long demanded the nationalization of the mine, which previous Kyrgyz governments refused.
Riots have even broken out in recent years on several occasions.
But the situation has changed since 2020, when current President Sadyr Japarov was brought to power from the streets.
A fierce opponent of the Canadian company, in the past he led a movement for the nationalization of the mine, which earned him nearly 4 years in prison.
From now on, he will be able to implement what he has always stood for.
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