Centerra Gold Pay Prompts ‘Strong Reservations’ From Kyrgyzstan

Kyrgyzaltyn JSC, the Kyrgyzstan-controlled company that’s Centerra Gold Inc.’s largest shareholder, said it’s “concerned” about the Canadian gold producer’s performance and management.

Kyrgyzaltyn has “strong reservations” about Centerra’s proposed compensation for senior management, said Kylychbek Shakirov, deputy chairman of Kyrgyzaltyn’s management board on economics and finance. He commented today at Centerra’s annual shareholder meeting in Toronto.

Kyrgyzaltyn is also concerned about a proposal to reappoint KPMG as auditors of the company and that management renominated Bruce Walter as a director, he said.

Kyrgyzaltyn has a 33 percent stake in Centerra, which owns the Kumtor mine in Kyrgyzstan. Toronto-based Centerra is in negotiations with the government on ways to address concerns raised in a report by a state commission regarding taxes and ownership issues around the project, Chief Executive Officer Ian Atkinson said yesterday in an interview. The company isn’t prepared to reopen the 2009 agreement, he said.

Kyrgyzstan has no wish to nationalize Kumtor, Shakirov said today.

To contact the reporters on this story: Liezel Hill in Toronto at lhill30@bloomberg.net; Christie Smythe in Brooklyn at csmythe1@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

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