24.6 C
Belgrade
Supported byspot_img
spot_img

Kyrgyzstan revives claims against Centerra Gold

Member of Europium Groupspot_img
Supported byspot_img

The previously withdrawn-but-revived claims relate to 2016 and 2017. They include $106-million for withholding taxes paid to its parent company and $17-million related to payroll deductions not withheld by Kumtor Gold Company (KGC) on certain national employee compensation.

The State Tax Service in Kyrgyzstan has revived previously-terminated claims and instituted a new claim against the Kumtor mine, Canadian owner Centerra Gold confirmed, but said it believed the claims were exaggerated and without merit. In total, the claims amount to about $146-million, which include significant penalties or sanctions.

The new claim against KGC is for $23-million and relates to payments to the Kyrgyz Republic Social Fund during the years 2011 through 2017. This, Centerra said, was despite the State Tax Service having previously confirmed that KGC had no outstanding Social Fund payments.

Supported by

Centerra pointed out that the 2009 restated project agreements which govern the Kumtor mine contained a specific tax and fiscal regime, which provided that no taxes were payable by KGC on intercompany transactions with Centerra, including dividends. The miner further said that KGC had received requests from the State Tax Service to re-audit KGC’s financial accounts for 2014 through 2019, but that it disputed the service’s ability to carry out such re-audits.

“The company has benefited from a close and constructive dialogue with the Kyrgyz Republic authorities over many years and remains committed to continuing to work with them to resolve any outstanding issues in accordance with the 2009 restated project agreements applicable to the Kumtor mine, which provide for all disputes to be resolved by international arbitration, if necessary,” said Centerra.

Earlier this year, Parliament formed a State Commission to, among other things, review the performance of the Kumtor mine and to review the results of a previous 2012 Kyrgyz Republic State Commission.

Source: miningweekly.com

 

Supported byElevatePR Digital

Related News

Expansion milestone: MetalsTech extends operations at Sturec gold mine in Slovakia for ten more years

It sounds like MetalsTech (MTC) has some exciting developments with its Sturec gold mine in Slovakia. The ten-year extension of its underground mining permit...

West African Resources provides production update for Sanbrado gold mine

West African Resources recently provided a production update for its Sanbrado gold mine in Burkina Faso. In the update, the company disclosed that it...

Strickland Metals expands portfolio: Secures Rogozna Gold Project in Serbia for growth initiatives

Strickland Metals Ltd has announced its acquisition of the Rogozna Gold Project, a significant move set to bolster its position in the global mining...

Lundin Gold revises reserves and resources estimates for Fruta del Norte gold mine in Ecuador

Lundin Gold has revised its estimates of reserves and resources for its Fruta del Norte (FDN) gold mine in Ecuador. The proven and probable...
Supported by
Supported by
Supported by
error: Content is protected !!