Centerra Gold Inc. (
TSX: T.CG, Stock Forum) said Wednesday it is aware of media reports in the Kyrgyz Republic indicating that the Kyrgyz Republic State Agency of Geology and Mineral Resources (SAGMR) has granted approval to the 2014 Kumtor mine plan.
Published reports said the government of Kyrgyzstan has approved Centerra’s mine plan for 2014 ahead of a deadline set by the Canadian company which had threatened to shut operations at the country’s largest gold mine.
“We have signed a relevant order. The company receives the right to continue its work,’’ Valery Dil, Kyrgyzstan’s deputy prime minister in charge of economy investments, said during an interview with Reuters news service.
For its part,
the company said in a press release it continues to work constructively with the relevant government agencies. However, it went on to say that the company has not received official approval of the mine plan.
Additionally, Centerra notes that the 2014 mine plan requires approval of not only SAGMR, but also the Kyrgyz Republic State Agency for Environmental Protection and Forestry.
“There can be no assurance that all necessary approvals and permits will be issued by the close of business on June 13, 2014,’’ the company said.
If such approvals are not forthcoming, Centerra said it intends to begin the orderly shutdown of operations at the Kumtor project.
Centerra shares rose 5.4% to $4.29 on Wednesday, leaving a market cap of $1 billion, based on 236.4 million shares outstanding. The 52-week range is $7.20 and $2.82.