VANCOUVER (miningweekly.com) – A resolution to the drawn-out dispute between Canadian gold producer Centerra Gold, the Republic of Kyrgyzstan and State miner Kyrgyzaltyn could potentially be reached by mid-year, the multinational miner said in its year-end results statement issued late on Thursday.
Centerra, which in January filed a request for a partial award or interim measures against the Kyrgyz Republic with the Permanent Court of Arbitration, is seeking an award ordering the Kyrgyz Republic withdraw or suspend its claims relating to environmental, dividend and land use accusations, and related decisions and court orders.
The Kyrgyz Republic, Kyrgyzaltyn and Centerra are expected to make submissions by the end of April and the company expects that the arbitrator will render a decision on the matter in mid-2017.
A single arbitrator will determine the outcome of the dispute, which will be conducted under UNCITRAL Arbitration Rules, in Stockholm, Sweden.
However, the TSX-listed miner noted that, whatever the outcome, there is no guarantee that it will be recognised or enforced in the Kyrgyz Republic, which could potentially hold the company liable to pay millions in connection with the claims, which would have a materially negative impact on the company.
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