Bishkek Court Wants Kumtor Gold Company to Pay $25 Million

The company failed to pay insurance fees

Oktyabrskiy District Court of the city of Bishkek ruled that Kumtor Gold Company is obliged to pay $25 million to clear off debt for insurance fees that the company failed to pay on time, Interfax news agency reported citing the High Court of Kyrgyzstan press service.

The court decision followed the claims of the State Tax Service, which accused Kumtor Gold Company of not paying insurance fees.

«The company is obliged to pay $24.8 million to pay off a debt plus an administrative fee of $124,000,» the court said.

The company can file an appeal within 30 days of the decision.

At the same time, Akylbek Zhaparov, head of the state commission, which scrutinizes Kumtor Gold Company activity, asked the parliament to extend the deadline of the commission work until fall, website reported.

«We are just in the very beginning of this big work, so we need some more time and that’s why we ask the parliament’s deputies and speaker to elongate our work. We can help the government to exact financial resources. We have already done all paperwork and are ready to start arbitral cases. Our lawyers suggest that the parliament participates in these cases as a people’s representative,» Zhaparov said.

Moreover, on May 7 Bishkek Court decided to support claims by several residents of the Issyk-Kul region and to exact from the Kumtor Gold Company more than three billion dollars for a violation of the environmental legislation.

Kumtor, one of the biggest gold mines in Central Asia, is in the Issyk-Kul region, north Kyrgyzstan 60 kilometers from the border with China at the height of 4,000 meters above sea level.

The mine is developed by the Canadian Centerra Gold subsidiary Kumtor Gold Company.

Centerra Gold Inc. with headquarters in Toronto has assets in North America and other regions. The company’s biggest gold mines are Kumtor and Mount Milligan in Canada. Kyrgyzstani company Kyrgyzaltyn owns 26% of Centerra Gold Inc.

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