TORONTO – Centerra Gold Inc. has outlined its expected terms to settle a dispute with the Kyrgyz Republic over a gold mine the country seized last year.

The government took over the Kumtor mine in May 2021 citing environmental and safety concerns, though the country has also long accused the company of not paying enough taxes.

The Toronto-based gold miner has denied those allegations and says it is in ongoing negotiations with government representatives to settle matters.

It says it expects any settlement to include Centerra receiving the 26.1 per cent of its shares held by Kyrgyzaltyn JSC, a state-owned company, and for the two nominees from that company on Centerra’s board to resign.

Centerra says it also expects the Kyrgyz Republic to take all responsibility for the Kumtor mine and to release the company of any claims and to stop all legal proceedings.

It says as part of a settlement it will pay the cash dividends to the Kyrgyz company that it did not pay last year.

Centerra reported a US$926.4 million loss last August on the change of control of Kumtor, while the company continues to operate mines in British Columbia and Turkey.

This report by The Canadian Press was first published Jan. 3, 2021.

Companies in this story: (TSX:CG)