A high stakes game now for them. Gold "Kumtor": the debate has intensified
SAYASAT.kg
January 12, 2015Print version
The idea of nationalization of the gold deposit "Kumtor" repeatedly raised before that time. Faction "Ata Meken" legitimized to voice initiative and seeks to nationalize the country's largest mine. Nationalisation means to deprive someone of his property.
What will happen to the international image of Kyrgyzstan, the reputation of a democratic state after this step, impossibly high amount lawsuits international courts, ending the flow of investments attracted to the country - all of these effects are well aware of the initiators of the idea of nationalization. But on the issue of "Kumtor" economic interests are sacrificed to political.
Deputy Chairman of "Kyrgyzaltyn" K. Shakirov said that an international arbitration tribunal may collect in favor of Canada's $ 3.5 billion. As long as no one really can not name the amount of fines in favor of the company, which lost a large gold mine. It is no secret that the Kyrgyz government still can not get rid of the effects of litigation on the mines, like "Kumtor".
The arbitration decision binding on
MATERIALS ON THE THEME
- We suffocate the Kyrgyz economy with their hands
- Nationalization "Kumtor" - diversion to the people of Kyrgyzstan?
- Uluk Kydyrbaev, executive director of the "Chamber of Tax Consultants": "The international community will accept a negative step to nationalization" Kumtor "
- We need to stay away from the idea of nationalization
TAGS
Kumtor , shares , Nationalization , court , lawsuits , Gold
Last year, the Kyrgyz government informed that disputes with investors covered in 13 international arbitration courts. It is well known that international arbitration, examining how the government fulfills its obligations to investors, compliance and legal requirements often make decisions in favor of the investor. For example, the Kyrgyz government has been the claim in excess of $ 20 million for the creation of obstacles to plans to build a South Korean businessmen in FEZ "Bishkek" entertainment center. After that - the claim for the payment of $ 11 million for loss of profits of the Turkish company "System Myuhendislik" 118,200,000 dollars for the creation of obstacles in the activities of the Canadian company "Stans Energy".
Kyrgyzstan is most likely to lose coming from "Kumtor" millions of dollars in the event of nationalization of mines. According to the signed in late 2003 agreement, Kyrgyzstan received 33 percent stake in the new company "Centerra Gold" and entered the list of punters. Then half of the shares worth $ 200 million, or more precisely 7.5 million shares, worth $ 86 million have been sold and the money used to continue the poverty and other targets.
Now shares are cheap
The remaining 16.1 percent stake in Kyrgyzstan "Centerra" issued 43,500,000 common shares, with whom Kyrgyzstan to date supports the largest shareholder of "Centerra" and one of the main players. By the way, has created agreements on joint development of the mine with the Kyrgyz government company "Cameco" in 2009 sold 54.1 percent of its shares and dropped out of the game. Who knows, if in 2004, Kyrgyzstan has not sold half of its shares, at the present time would own 50.5 million shares and took off to the cream of the field. But even without previously sold 7.5 million shares of Kyrgyzstan is the largest shareholder of "Centerra" competitors in the number of shares he does not have. If the world price of gold in 2012, $ 1,800 per ounce, then in 2014 dropped to $ 1,200. Value per share in 2011 amounted to 12-14 dollars.
As a consequence of these games around the largest gold mine in Kyrgyzstan do not decide the fate of the second largest gold mine - Jeruy. Few other problems in the mining area, now and over the "Kumtor" dark clouds are gathering. If economic issue given a political color, the result is exactly the same as recent events have shown.
"Kumtor" not break the order
At the largest deposit of gold has over 3 thousand people. 103 - foreign citizen, and the rest - Kyrgyz. Last year the company produced 18.6 tons of gold. The company informed that since the beginning of development (since 1994) to pay into the treasury of Kyrgyzstan 2 billion 424 million dollars. The head of gold enterprises Michael Fischer informed that this year the company plans to produce up to 600,000 ounces of gold and 18.7 tons. The company just this year on the capital costs of $ 85 million for preparatory work in the mine - 191 million dollars.
Complex issues in the mining industry emerge every year, accompanied by disputes and conflicts of interest. At this time, the government is creating a headache decisions of international tribunals, government wrestle with how to pay for millions of requirements claims. The government claims littered by tired of committed by individual officials barriers investors do not know where to get money to pay claims when an empty treasury.
Despite these factors is most likely that the issue of nationalization of mines or increasing the share of Kyrgyzstan to 67 per cent will be regularly raised in parliament. The reason - in the politicization of economic issues. Accumulated in the mining industry issues, for example, similar to the conditions of Mongolia and Kyrgyzstan have been resolved by an order wiser. From the outset, freed from the shackles of socialism in Mongolia have been defined conditions of activity of mining companies, the share of the state and the rules of the game. GDP in Mongolia with 2.8 million people, $ 18 billion, the country receives a share of the profits of mining companies, without raising the question of mines each time you change the government.