Centerra Gold: Subsidiary Kumtor to pay penalty for environmental violations in Kyrgyzstan

Bad news for Centerra Gold: In late May 2016, Kumtor Operating Company, a subsidiary of the Canadian mining company in Kyrgyzstan, was fined US$ 10,000 due to severe environmental damage. Kumtor operates the largest gold mine in Kyrgyzstan and Kumtor is also the largest western company operating in Central Asia.

The Kyrgyz authorities for ecological and technical safety has initiated further legal proceedings against Kumtor; in total the company will have to pay US$103 million to the Kyrgyz government. This first judgment and fine in May is only the first in a series of proceedings against Kumtor1. Kumtor has announced that it will appeal against the judgment2.

In a previous case in 2013, the Kyrgyz environmental and forest protection authority sued Kumtor for US$304 million. In this case, the company was accused of being responsible for air pollution from waste dumps. At the time Kumtor described the accusations as exaggerated and unfounded3.

Approximately 20 tons of gold are mined annually and the4 precious metal is the most important of Kyrgyzstan’s exports. In 2012 gold accounted for 37% of the country’s total exports.5.

Investment funds according to Onvista  that include Centerra Gold.

shareholders of Centerra Gold, according to Morningstar.

  1., 5/23/2016, accessed on 24.05.2016 []
  2., 5/23/2016, accessed on 24.05.2016 []
  3., 6/12/2013, accessed on 05.24.2016 []
  4., 14.05.2007, called at 24.05 .2016 []
  5., 2012 called on 24.05.2016 []