Canada’s Centerra said in a statement that Kumtor, which accounts for a fifth of ex-Soviet country’s total industrial output, adheres to international environmental standards.
It also said it “believes strongly” the claims against it are without merit.
Kumtor, the largest gold mine in the Central Asian nation, produced over 556,000 ounces in 2020.
The mine has produced more than 13.2 million ounces of gold between 1997 and the end of 2020. Last year’s output was slightly over 556,000 ounces.
In February, the country formed a commission in charge of reviewing the operation as the state Tax Service revived previously-dismissed claims against Centerra.
The revenue agency alleges the Toronto-based miner owes more than $170 million, which could made it subject to penalties or sanctions.
Centerra has said the 2009 restated project agreements which govern the Kumtor mine contained a specific tax and fiscal regime. This states that no taxes are payable by its local unit Kumtor Gold Company (KGC) on intercompany transactions with Centerra, including dividends.
Mounting issues
The company is also facing a civil suit against the operation, requesting that its past practice of placing waste rock on glaciers be determined to be illegal. The claimants are demanding over $3 billion in environmental damages in favour of Kyrgyzstan, Centerra said.
The gold miner noted it was committed to continue working with Kyrgyz authorities to resolve any outstanding issues in accordance with existing contracts.
Kumtor has been the focus of a number of disputes between the company and the Kyrgyz government.
President Sadyr Japarov, who seized power after violent riots last October, once campaigned for the nationalization of the mine. After assuming the post, however, he said he no longer considered necessary to take control of it.
Kyrgyzstan has a history of popular uprisings and political turmoil, ever since gaining its independence after the end of the Soviet Union in 1991. Protesters had ousted two prior PMs in revolutions in 2005 and 2010.
