Kyrgyzaltyn Says It’s ‘Disappointed’ With Centerra Decision

Kyrgyzaltyn JSC, Kyrgyzstan’s state-owned mining company, said it’s disappointed that Canada’s Centerra Gold Inc. kept Stephen Lang as chairman yesterday even after he received less than 50 percent of shareholders’ votes.

“We are disappointed that the board has decided effectively to ignore the outcome of the voting process for Mr. Lang,” Kalkaman Berdibaev, a spokesman for Kyrgyzaltyn, said today in e-mailed statement.

Kyrgyzaltyn is the largest shareholder in Centerra with a 33 percent stake. At Centerra’s annual shareholders meeting yesterday, Kyrgyzaltyn withheld support from Lang and two other directors, criticizing the age profile of the board and what it said is a lack of diversity.

Centerra doesn’t have a policy requiring directors to receive a majority of votes. Lang, who got 47 percent of votes in favor of his reelection, was advised by his company’s nominating and corporate governance committee to stay on as chairman, Centerra said yesterday.

Centerra is in negotiations for Kyrgyzstan to swap its equity in the company for a stake in the Kumtor gold mine.

Before it's here, it's on the Bloomberg Terminal.